Mortgage? This is a tough one! (sale, real estate, renting) - Raleigh, Durham, Chapel Hill, Cary - North Carolina (NC) -The Triangle Area - City-Data Forum

Family 5 · 05-22-2008, 10:07 AM

We are moving down from CT and we would like to make an offer on a home. Our agent says we need a preapproval. We're wondering if anyone can recommend a creative Mortgage Broker. We will be moving down w/out jobs but with a lot of capital from the sale of our house. Any ideas of how to get a mortgage without jobs but w/ $ and credit scores in the 800 range...without paying 9% interest because we are "high risk"? Any help would be great...thanks!!

jln69 · 05-22-2008, 10:21 AM

I was very surprised but we just got a no doc/paperless mortgage on our new home. I was very surprised that they would do this now. My husband and I are employed but they said based on our excellent credit score they did not need any verification. The whole thing was processed and we received pre-approval in less than 2 days. Done. I was shocked. The rate was great too. A little over 5.5%.

Shop around. Not everyone will do it. The lender in my real estate office won't do paperless anymore so we decided to go with the other lender to make it easier on ourselves. We didn't even ask. They told us we qualified for paperless VIP service.

funkybutt · 05-22-2008, 10:56 AM

Wow - you're lucky! We were in the same situation (both have credit rating over 800 and we'll be putting over 50% down). Everyone we talked to wouldn't give us pre-approval without considering us "high risk". Luckily, it only took one of us 2 months to get a permanent job, and we're currently under contract.

TimtheGuy · 05-22-2008, 01:16 PM

Quote:

Originally Posted by jln69

I was very surprised but we just got a no doc/paperless mortgage on our new home. I was very surprised that they would do this now. My husband and I are employed but they said based on our excellent credit score they did not need any verification. The whole thing was processed and we received pre-approval in less than 2 days. Done. I was shocked. The rate was great too. A little over 5.5%.

Shop around. Not everyone will do it. The lender in my real estate office won't do paperless anymore so we decided to go with the other lender to make it easier on ourselves. We didn't even ask. They told us we qualified for paperless VIP service.

Your deal sounds like what we would call a SISA (stated income & stated assets). These require employment, but income and assets are not verified. It is going to be much more difficult to obtain financing if there is no employment and you won't get the going rate like the "5.5%".

rcarrillo · 05-24-2008, 12:16 PM

As Tim said, these are 2 totaly different situations.

Having a job but not verifying income or assets with 720+ score and 10%+ down is still very possible. If Fannie Mae/Freddie Mac give you an approval based on their underwriting system with "reduced documentation" then you are fine. It is called different things by every lender (paperless, fast & easy, fast trak, home quick, super simple, express, shortcut, etc) but essentially they are the same thing..

You get A quality financing with reduced paperwork because you have the credit + down payment to reduce the income/employment verification.

A loan with no job is much harder and riskier so it requires a premium. In your case, you had a job but did not verify the income (sometimes they just call to verify the employment, sometimes nothing). In this case, the buyer does not have a job and putting down "employment" in NC and hoping the lender doed not verify it is FRAUD.

Low documentation loans are supposed to be a way to reduce paperwork and reward borrowers with strong credit, down payments, etc. Unfortunately it became an invitation to fraud by people just filling in bogus employment, exagerated income or imaginary assets. This was and is mortgage fraud and while it got by the underwriters before as "creative" will now be busted (as it should be).

For a "no doc or no income/no asset/no employment" loan the rate will be much higher.
There are some alternatives you can consider such as buying the home before you quit the current jobs, getting a verifiable offer of employment and trying to use that or crazy as it might seem.... renting for 3-6 months.

I know people are eager to but homes and hate having to pack twice, but maybe get a POD and leave everything but the essentials in storage. It will give you more time to look for homes and get settled into work and the area before you have to deal with a new home and mortgage payments as well.

sbanawan · 05-24-2008, 01:03 PM

I've been working with a broker and he's been great. We went in with a complicated situation (renting our current home vs. selling it vs. HELOC, etc.) and he was very patient with us. Always responsive and prompt. PM me if you want his info.

renriq02 · 05-24-2008, 11:00 PM

If you put over 20% down, have a 720+ credit score, and your loan amount is less than 417k, then the Automated Underwriting System (AUS) will more than likely NOT ask for income verification.

The system WILL ask to verify your job even if you're self employed but will not ask to show proof of income.

JMecca · 06-10-2008, 11:28 AM

Hello Family,

Most people will purchase the home as a 2nd home until they move down here while retaining their current home and Job. Of course you would need to qualify for both homes. You would save a lot of money and as long as the underwriter and everyone is clear with your intentions then it should be fine.