Wanted an opinion once and for all as to whether I am S**T out of luck getting this with my given criteria. Here’s my situation.
Excellent credit. Over 750 FICO. Live with parents. Less then $15000 in total assets. Self Employed less then a year and income is shaky at best. Can I get a No Doc 100% loan or an 80/20 loan where the 20% is a second mortgage. Oh and this loan would likely be in the $300000 range. I have zip to put down. Parents will help with closing costs as I don’t want to dip into what little assets I have. Looking in the suburbs around New York City. Looking to buy something and flip it after minor rehab so would also need to find a lender who will figure costs of rehab into the loan somehow. Is this all doable in my situation or am I kidding myself.
I was told by a few people that 100% or 80/20’s financing are unlikely with my criteria especially in NYC area even with my good credit. I spoke to a couple of small mortgage brokers and Ameriquest who say they can do it but I am afraid when if I actually try to go forward with the loan with them they will come back saying they can’t do it. Worried they may be giving me false hope just to hook me. At least thats what a few people I have spoken with say the brokers are actually doing. Need advice and opinions.
Are you a first time homebuyer and do you have “deep” credit (at least one credit line over 24 months old, preferably 3)?
These are two things that will play a factor in whether you can get the no doc loan. 100% financing will be difficult despite your credit.
One of my clients had a scenario like yours and the best I could find was with 5% down because he was a first time homebuyer. Some lenders have restrictions as to the max % you can borrow if a first timer.
It is possible to find 80/20 deals for investors. In fact I am working with a client right now that wants to do exactly that. I am working with Aurora Loan Services on a program called Money maker.
It offers an 80/20 option with no doc. Keep in mind however that the rates are quite a bit higher than the market rate for full doc with some money down.
Another great option for you is to get the first and find out if the seller will carry the 2nd for you. Or since you live at home, call this your first home. Move into it and then move out to rent it later. You’ll get a much better deal as owner occupied.
You will only be able to do this once every 12 months for seasoning purposes. NODOC 80/20’s are much easier on owner occupied properties.
Aurora does not have a 100% CLTV no doc. In fact, a 100 NOO No Ratio will cost your borrow 8 or better on the 80 and 13.25 on the second with him bringing $800 to cover the remaining points.
And, 80/20 No Docs on are not much easier on owner occupied properties, they are still “Not going to happen”.
Shop around, you can get better rates for investors than that.
If it is not possible why would these brokers I have delt with tell me they can do it, this also includes those brokers responding here in the thread, when they already know full well that I do not have the money to put down and need a No Doc. I mean if they are just doing a bait and switch to make me end up with loan at the last minute that would require money down how would they expect me to go through with that loan. Seems like they are wasting their time to me. Why bother misleading someone knowing they lack the cash. Not like they will be able to get a conventional loan out of me at that point.
And I absolutely cannot occupy the home. So whether the mortgage broker can work the loan and an investment or owner occupied I guess is another issue. I would be unable to cover the mortgage payments for more then a few months. My goal is to buy it, fix it up and flip it within a couple of months. With the high cost of homes in my area (Starting at around 200k and an average price of $400k) my only option is an 80/20 No Doc loan. Damn closing costs are likely going to be around $10000 based on homes priced around 250k to 300k which is maximum range I am looking in. This is according to the many RE brokers I have spoken with. I’m not to worried about the closing costs as I should be able to work it so the seller pays most of it.
100% financing is MORE than possible with Investment loans, however on a NO DOC, NOO it’s a lot harder…jchristensen2901 that is a good program…
Adam listen to this guy…he’s good…claim it as OO, and move in for 1-2 months…move out and rent…it’ll cost you a couple months of rent but in the end you’ll MORE THAN make up for it.
I’ll take one of those 100% NOO NoDocs. Where would you like me to send the 1003, credit report, and contract? I’ll let you make 3 points on the back, I’ve got an executed contract sitting in front of me right now…
You can fax it to 718 897 2997. Ill take the three points on the back and 2 in the front as well. Since youre giving it away anyway …just make it attention mike
Ill get the 100% loan to sale price as long as there is equity (quick sale value).
You can be helped. If you talk to a mortgage broker ask them if they work with Aurora. They have a progam called Mortgage Maker and you can do a true no doc. No employment. No Assets stated on the application. Rates might be steep but it can be done.
They cannot do a 100% CLTV NOO No Doc. I was willing to pay their terrible rates if they could, but they cannot. I’ve tried, trust me. Read it for yourself…
LOL no hard money here…usually when banks talk of LTV they take the lessere of the two (Contract and Appraisal). I will do 100% of Contract and about 75% of Appraisal which is why I ask for equity. 100%-100% is not only unlikely its a risk no one would take…unless it is hard money and even then if you knoiw a hard money dealer who will do 100% of the appraised value then thats great…send over his contact info. Bu7t nonetheless…100% of contract is fine so long as it doent exceed 75-80% of appraised value.
My company used to be owned by Staten Island Bancorp which was sold to Aurora. I worked at the corporate office and sold the very same products that your talking about and still do. You can do a 100% stated/stated, or a 95% No Doc. There are plenty of conventional lenders that offer those programs and close them every day. You just need to find a loan officer that specializes in investor loans, and make sure they’re a direct lender.