Hi everyone, I am looking for a good mortgage broker (or other resource) who knows the ins and outs of odd-situation loans and the effect certain credit report changes will have on FICO scoring. A brief summary is here: I am married. My wife and I make good money from my businesses. We have a reasonable & positive net worth. She has good credit - currently a 692 which will go up significantly in a short period of time. (The idenfitied risk factors @myfico are easily and nearly immediately correctable, once done, there are nothing but positive references and $50k+ in available credit.) I have no credit (or will after a few inaccuracies are taken care of) - pay cash for everything and never gave getting credit a thought. We are going to purchase a home by February. And I need to play out various situations with someone who knows the effect different actions will have. For example, will my non-credit hurt or help when merged with hers? If I open accounts now, so close to when we'd want a mortgage, will the net effect be hurting out score. Etc, etc. What about going "joint" on hers? I also have some questions about levels of documentation. Being a business owner, I deliberately keep my personal income low, for tax reasons. And so on and so forth. Is there someone here? Or someone that can be recommended? I am hesitant to call someone from an ad or the phone book. This is not an issue I am willing to "take my chances" with. I am open to using a broker I find here to secure a loan. I am not just interested in leeching information. Max.
I love my broker, Don! You can see what you think..he is at www.aimloans.com or www.metloans.com. His email is don@aimloans.com. I have had a real good experience with him..one of my favorite things about him is that he'll let you know what he thinks before pulling a credit report..so I knew it was worth the points when he looked at my credit report. Note to all: I am not connected with him in anyway other than he is working on my mortgage. Now, we are days away from closing..so if you want to talk to him..and follow my experiences to the end, I'll post them here.. That way you'll know if the story really does have a happy ending. good luck
Why don't you become Joint on some of here acounts or AU. Many people have reported that the history inadvertantly comes with the CR entry often. Might raise your score.
I am a mortgage broker and my first question to you would be what is your down payment? Secondly, can you debt ratio on just your wife's income. If you cannot then you could do a stated program. Countrywide has a couple of really good programs. If you don't want to show any income then your going to need to show assets, have good credit and come up with a decent downpayment. Five percent or more.
Hi mspencer, Thanks for your response. As for the answers, I really don't want to go into them on a public bulletin board. Basically though... Downpayment, income, and assets can be tailored to whatever level I need them to be to get what I want. It is just a matter of shifting what is needed from the business and absorbing the tax hits. Because of those tax issues, I want to minimize it. Your account is set to disallow private E-mails so I was unable to send a more detailed, private response. Mine was as well (unknowingly) until a few moments ago. So, feel free to E-mail me privately (click on my name at the top of this post) and we can talk details if you are so inclined. Max.
I, too, am looking for a good mortgage broker that can do business in Tennessee, and has a "creative" mind but won't rip me off on the fees/rates. If any are out there and want to contact me, my email is shanmccullough@msn.com. THANKS!! Shanna
It sounds like you might be a prime candidate for a NINA loan (No Income No Asset.) This a a program I personally use often. You don't even put your income on the application so debt ratio is not an issue. With your significant others score being in the 690+ range you can qualify for a 95% loan. The 5% you have to put down is not verified or sourced. If you have more than 4 open trades between you that have a balance and 24 months history you should qualify just fine. Which state are you located in? I work with brokers all over the country so I might know someone in your area. CF
I've never done business in Virginia. Call any broker and tell them they need to get approved with North American Mortgage, they are one of a small handful of lenders that offer this program. If nothing else tell them they need to cut you a deal since your setting them up with a new investor with some great programs. If North American doesn't do business there e-mail me and I'll give you some more company names to try. I don't want to list any more here because I am also a lender and don't want to turn too many people to the competition.LOL. CF cforney@premierloans.com
CF, I called North American Mortgage. Souded good till they got to the rate! I expected it to be higher than a conforming loan, but not that high! (9.5%). I live in Tennessee. Any suggetions for me?? Shanna
That rate sounds about right for that program. Any time you don't have to prove your income and don't have to source your down payment things get a little more expensive. These rates aren't controlled by the fed, they are private money that investors are loaning to niche borrowers. Think of it this way, at the end of the year when you get your 1098 showing the interest you paid you'll get a larger write-off. Talk to your accountant and see if the higher rate will offset your taxes enough to make up for the extra you pay in interest. Most of these programs don't have a pre-payment penalty so you can get in to your house and start shopping for a better rate when you can document enough income to qualify for a conforming loan. Non-conforming programs are usually short term loans for people. Just like sub-prime cards, use them until you can get something better. CF
CF, thanks for the insight. I guess I could go to other boards to learn more about mortgages, but since I'm here and you're here ... I'd never heard of a NINA mortgage. What documents does a person need to get one of these? My situation (projecting forward to when I plan on looking) will be adequate income and assets, but no paperwork, 750 or so FICO with a 3 year old 30-day late as the only negative and some tradelines over 5 years. My main concern is going to be documentation. (Some people have credit problems, some people have cashflow problems ... I have problems keeping track of paper.) Besides, if debt ratios are taken off the table then I can privately count my gf's income into my budget without bringing her credit into it. (Her credit looks like an Amtrak train hit a Ford Explorer.) 2.5% or 3.0% higher APR over conforming loans is a lot, but I'd be in line to consider it. If there's an option that lets me avoid documentation and put down just 5% I'm happy.
A NINA program obviously requires strong credit. Basically the lender will take the risk on you based upon your credit and 5% down. There is mortgage insurance on any loan-to-value >80%. NINA programs are for people who don't want to document their income. If one were just a lousy record keeper there are still ways to document income. A stated income program would have less of an intrest rate bump than a NINA program. A stated program requires six months reserves along with a down payment. Stated programs are usually 3/8% better than NINA programs. Today 8.25% was the par rate for A NINA 95% LTV purchase or Rate/Term refinance.
The NINA program I was referring to has lender paid MI, that's why the rate is higher. Personally I would rather have it that way, you have no tax benefit by paying the MI yourself. The NINA is just that, No Income No Asset. Nothing is verified. You can qualify for a 95 NINA with as low as a 620 middle score, the rate gets better with a higher score. Anything above 700 is considered the cream of the crop. The only thing you would have to verify is the existence of your business if your self employed. The way to document this is with 2 years business licence or a letter from your CPA. There probably are lower rate programs out there but you'll pay for it in other ways, ie mortgage insurance or a prepayment penalty. This board is great for mortgage issues, it's for all credit matters not just credit cards. I have seen advice from professionals as well as experienced consumers. Keep asking away, I'm always willing to help if I can. Good luck and happy house hunting. CF
CF, do you know any brokers in Tennessee that handle the NINA loan?? When I talkted with the lady at the mortgage company you mentioned, she was obviously reading from a manual...some of her info comflicted yours (and, honestly, I am inclined to believe someone like you who works with the programs every day than a paper pusher in thier office). I like that idea, and the down payment would not be a problem. I have about a 700 score (depending on the bureau) and am working on paying off some debt and disputing some inquiries that should push it even higher. My husband has horrible credit (which we are working on) but if we just use my credit, then our DTI is WAY up there. I am a W2'd employee, and get a salary as well as comission, so I don't know if I would qualify for a NINA. Any referrals or suggestions would be appreciated!!
I'll check our database and see if we deal with anyone in tennessee. That's not in my territory. Don't worry about the income portion of this type of loan. You never even disclose what you make. The only thing you list on the application is an employer address and phone number. Some one calls your HR department and verifies the date you started and your position, that's all. I'll post a company name and phone number as soon as I can. CF P.S. If your score is already over 700 no worries.
NINA and similar OK, I'm starting to understand no-income versus stated-income versus traditional ... is there somewhere a person can see all the different types of mortgages that are possible? I thought I had learned that already, now I don't know how little I know. Books, maybe? When they verify employment are they still looking for 2 years at one job or at least 5 years in one field? I'm in IT and 2 years at one job in this industry is like a 20th wedding anniversary. BTW, I could document income if I tried but I have other reasons for preferring not to do that. Actually I might come up with W-2's for a few years, but I feel 1040s and other forms have more information than even a lender needs to know. Anyway, needing a down payment and many months of liquid reserves, as much as I wish I had them, would keep me out of a house forever. If I had it I could document it (how hard is it to show a bank statement?) but that's more money than I may ever have at once. Sure I can save a certain amount every year, but I'll be saving less than houses appreciate. So non-documentation of both income and assets sounds good.
