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Old 01-13-2009, 08:19 PM
 
Location: Nothing could be finer... I'm in S. Carolina!!
1,294 posts, read 6,236,345 times
Reputation: 419

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I know, the answer is no and I know it's a good thing for most, but it's penalizing those of us who can afford and deserve and want a house but haven't been working for two years yet (and are going to be self employed). My husband and I are purchasing a dental practice and have also found a house that we really like. We have 20% to put down, good credit scores (high 700s), only a little debt, and money in the bank, but just because he's been in school, we haven't been working, and he'll be self-employed, we don't qualify for any mortgages now. We even have the business's tax returns to prove it's made $$ for the past 20+ years.

Everyone has said, "if only you had done this a year ago"... ugh! They all say they could have given us a stated income loan in a heartbeat with no problems at all. At the very least now, I've found someone who needs 6 months income to show we're making money before they'll approve us. One person said they might could do it with one month, but even by then, the house will probably be gone and we'll be in a one year rental contract (my husband is doing a residency now and we're moving in June to take the practice).

The owners of this house even want to rent the house from us until we move back in June, to keep her kids in school. It's really an ideal situation, a great house, a great price, a great location; except for the tiny thing that we can't get approved for a mortgage. It seems a little unfair.

I know, there are other houses, but we both like this one and that's kind of unusual for us. We are pretty picky. We wouldn't have even looked if we thought we would have had a problem getting approved. This has kind of come as a shock to us. I've called at least 30 mortgage lenders, brokers, banks, etc. with no luck. We have one last mortgage guy who is scouring people he knows to see if there's anything out there for us. He should have info tomorrow or Thursday. If he says no, we've run out of people to call.

So the question?? Do you have any suggestions or ideas as to what we could do to possibly get approved now? Is there anything out there?
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Old 01-13-2009, 08:55 PM
 
Location: Wyoming
9,728 posts, read 19,422,815 times
Reputation: 14755
Your situation isn't really too bad (dentist with 20% down). Considering the fact that the sellers would like to live in the house until June anyway, they might be willing to negotiate a contract that would work. Sales contracts are normally contingent upon the buyer getting financing by a specific date, so all you'd have to do is get them to agree to a date that works for you.

Alternatively they might consider a contract for deed with $X down, $Y per month with a balloon payment at a certain date.

You might also buy an option-to-purchase at a specified date with the cost of the option to be applied toward the final purchase price.

Talk to a real estate attorney and the sellers about what might work for both you and the sellers. The sellers might need the money immediately, but if home sales are lagging in your area there's a good chance you can make it work for both parties.

Good luck.
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Old 01-13-2009, 09:42 PM
 
Location: Nothing could be finer... I'm in S. Carolina!!
1,294 posts, read 6,236,345 times
Reputation: 419
thanks for replying wyonewk. the one point about the sellers i left out was that they want to sell now and rent from us, so we would need to put an offer in now and buy it. they are relocating for the owner's job and need the $$ to buy a new house where they are moving to. i wish it was as easy as negotiating the date....

in your second sentence, alternatively.... is the they the owners or a bank/ mortgage lender?

also, i don't understand the 3rd option either. is this also the buyers or a bank/ mortgage lender?

the sellers have said they will 60 day closing, and that's wonderful but we can't seem to find financing at all, much less in 60 days. there's been a good bit of interest in their house over the past couple weeks, so i think they're thinking they could go with another offer but they like us a lot (our situation, they don't know us) and they love the fact that they wouldn't have to rent an apartment (the husband has already moved, the mom is left in the house w/ the kids until school is out). so - what could i ask the sellers to do that's not asking too much of them since they do need the $?

thanks again!
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Old 01-13-2009, 10:31 PM
 
Location: Wyoming
9,728 posts, read 19,422,815 times
Reputation: 14755
Quote:
Originally Posted by fisher33 View Post
... in your second sentence, alternatively.... is the they the owners or a bank/ mortgage lender?
THEY referred to the owners/sellers.

Quote:
Originally Posted by fisher33 View Post
also, i don't understand the 3rd option either. is this also the buyers or a bank/ mortgage lender?
Again, I'm talking about you purchasing an "option to buy" from the owners/sellers, NOT from the bank. Again, the amount you pay for the option can be any amount you can afford. I'd just make sure it's not more than the equity amount (the difference between the price of the home and the mortgage).

In that way the owners/sellers would be getting money for a down payment on their next home. They'd still have an ownership in their current home, as you would with the option to buy (future interest).

What might work is a "lease with option to buy". When financing their next home, they'd show the monthly lease amount as income, so that would offset their mortgage payment on the home you're talking about. The home would become an investment property for them, if only until your mortgage was approved and you could close.

I'd think a contract for deed would offer similar advantages. An attorney could explain the advantages and disadvantages of both methods.

Nobody really likes to get into these "creative financing" schemes, so they might turn up their noses at it, but since they could keep the house until June and get some money from you quickly, it could be advantageous to them. If homes are moving slowly in that area, it becomes doubly advantageous since, with a sizable payment from you, they're pretty much assured of a sale and can take it off the market and get on with their lives.

Be SURE to talk with a real estate attorney about this stuff, as it could become a nightmare if the contract isn't worded correctly. Your attorney might also have some better ideas than mine -- or tell you my ideas won't work.

Disclaimer: I'm not an attorney, although I watch People's Court twice each week.

(I was a real estate broker for a short time, nearly 30 years ago, so that's where my ideas are coming from. At that time any of the options I mentioned could work, but you're in a different state in a different time.)

Last edited by WyoNewk; 01-13-2009 at 10:40 PM..
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Old 01-13-2009, 10:53 PM
 
Location: Wyoming
9,728 posts, read 19,422,815 times
Reputation: 14755
I'm a little surprised that you can't find a conventional loan from a local bank. This economy is tough on all of us. My ex was a mortgage lender, and I can recall her making huge loans to new doctors moving into town. Since I wasn't involved with the loans I don't know how she did it, but I suspect they might have been in-bank loans, possibly with a contract from the hospital guarantying a minimum income the first year or two. All I know for sure is that the doctors had little or no money for a down payment and no record of employment other than what they earned in residency.
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Old 01-14-2009, 05:51 AM
 
28,461 posts, read 78,578,082 times
Reputation: 18592
Many doctors are salaried -- "staff physician" of a hospital. Very few dentists are, the vast majority are independent / members of a small partnership.

There are lenders that specifically have programs for doctors, but fewer for dentists -- like the OP many are in kind of leveraged with the debt from the practice. If the OP is working with a lender for the practice that may be an avenue to pursue. Alternatively there are financial advisers that specialize in dentists, contact through a local ADA chapter may be worth pursuing.

Personally I have done deals with dentists who literally were great savers, so that may be in the OP's favor -- a good practice can generate large amounts of cashflow.
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Old 09-04-2009, 01:27 PM
 
1 posts, read 3,923 times
Reputation: 10
Default same problem

Hello my Jameel McCleary and I am having the same problem i noticed that u said u found a lender that was willing to loan with just 6months of information is that still true? it appears that you have done some heavy research i just want to know what my options are.. Im trying to get approved for A $11000 MORTGAGE. My 07 tax returns show little to nothing. 08 shows $23000 grossed... My year to date gross i show $16000 plus i have my ownbusiness on the weekends and i grossed bout $19000 there..I have completed a profit and loss for 09 to show..could u please send me an email(jameelmccleary@yahoo.com) with any helpful information? If u choose to respond Thank You soo much


Quote:
Originally Posted by fisher33 View Post
I know, the answer is no and I know it's a good thing for most, but it's penalizing those of us who can afford and deserve and want a house but haven't been working for two years yet (and are going to be self employed). My husband and I are purchasing a dental practice and have also found a house that we really like. We have 20% to put down, good credit scores (high 700s), only a little debt, and money in the bank, but just because he's been in school, we haven't been working, and he'll be self-employed, we don't qualify for any mortgages now. We even have the business's tax returns to prove it's made $$ for the past 20+ years.

Everyone has said, "if only you had done this a year ago"... ugh! They all say they could have given us a stated income loan in a heartbeat with no problems at all. At the very least now, I've found someone who needs 6 months income to show we're making money before they'll approve us. One person said they might could do it with one month, but even by then, the house will probably be gone and we'll be in a one year rental contract (my husband is doing a residency now and we're moving in June to take the practice).

The owners of this house even want to rent the house from us until we move back in June, to keep her kids in school. It's really an ideal situation, a great house, a great price, a great location; except for the tiny thing that we can't get approved for a mortgage. It seems a little unfair.

I know, there are other houses, but we both like this one and that's kind of unusual for us. We are pretty picky. We wouldn't have even looked if we thought we would have had a problem getting approved. This has kind of come as a shock to us. I've called at least 30 mortgage lenders, brokers, banks, etc. with no luck. We have one last mortgage guy who is scouring people he knows to see if there's anything out there for us. He should have info tomorrow or Thursday. If he says no, we've run out of people to call.

So the question?? Do you have any suggestions or ideas as to what we could do to possibly get approved now? Is there anything out there?
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Old 09-04-2009, 02:01 PM
 
Location: LA
304 posts, read 876,601 times
Reputation: 98
Quote:
Originally Posted by zuesman View Post
Hello my Jameel McCleary and I am having the same problem i noticed that u said u found a lender that was willing to loan with just 6months of information is that still true? it appears that you have done some heavy research i just want to know what my options are.. Im trying to get approved for A $11000 MORTGAGE. My 07 tax returns show little to nothing. 08 shows $23000 grossed... My year to date gross i show $16000 plus i have my ownbusiness on the weekends and i grossed bout $19000 there..I have completed a profit and loss for 09 to show..could u please send me an email(jameelmccleary@yahoo.com) with any helpful information? If u choose to respond Thank You soo much
Your inceom seems a bit low for a loan but it REALLY depends on how much you'll be spending, your debt to income ratio, and most of all your good credit.

LA County has a HERO program that allows moderate income folks to buy REO/bank owned properties (foreclosures) in certain areas and can help with the down payment.

Therea are lenders who specialize.
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