Can I get homeloan with 50% down and no W2 or 1099 INCOME statement

Wondering if this is possible. My buddy left corp america 1 year ago and now self employed. Daytrading part time and working on building a wholesale business to Europe from Columbia. NO money made on the venture yet. INcome is coming in on daytrading but with declared expenses, etc he really shows no profits.

He is has primary home which is now rented and has a mortgage and 3 condo’s owned free and clear with PCF. He has relocated his family elsewhere. Looking to buy over renting but does not want to pay all cash since leverage is better when starting a business now and looking into small rehabs.

Anyone know of a small bank that will carry about 100K note on a 200K home in Florida?

FICo is over 700 but no income to really prove, even self employed he does not have 2 yrs returns.


Yes, you can get what is called a private money loan with terms between 2 and 5 years with no documentation other than a credit check!

If you borrow $100k against a $200k property and put $100k down you can probable get an interest rate between 8 and 12% and expect to pay 3 to 5 points.
This would be a fully amortized 30 year note due in 2 to 5 years, presumable you would refinance and have ability to do a full doc loan within the loan period.

Good luck,


Not looking for HML. Rates are cheap now and 10% does not pay, rather rent over those rates. I am not new to the biz, but financing has changed so much and its been long time since I have done a conventional loan for myself, I do not even has a broker on my power team anymore.


Unfortunately California, Nevada, Arizona and Florida are at the heart of the real estate meltdown. I am pretty sure that just like California, Nevada and Arizona that the only way to get any mortgage financing by conventional method in Florida is a full doc loan! (Credit Score, 2 Years Tax Returns & Proof of Income required)

Hard money lenders usually get 12 to 18% interest and anywhere from 5 to 10 points. In some area’s you can get straight hard money at 18% with no points depending on your abilities and track record!

It does not matter how cheap conventional money is if you can’t qualify for it? Any lender be it conventional, Private money or Hard money are making funds available according to risk so the in-ability to show 2 years returns or proof of income kinda throws a wrench in the mix.

Good luck,


He wants a 200k house and he has 100k cash. He should be able to purchase a 200k house for 100k in Florida if he has any shopping skills at all.

From what I am hearing, he might be able to purchase a 300k house for 100k cash. He’s just going to have to dig a bit and make some low offers.

Well he is looking in one specific town and there less than 20 preforecloses in the town. It was an area not subject to flippers and investors during the boom. Yep there are some. Still deals in the area, most homes sell for 300K to million plus. The deal is 200K. Ever hear of Venice, Fl?

Venice is nice. My oldest friend has a family business there.

I would suggest the guy go to a local state bank branch and talk to a loan officer there. If he can show his tax returns and explain how he runs his business he should be able to get a loan. At the very least he could innquire about putting the 100k into a CD and then see about them financing the whole amount. Having that 100K added to their balance sheets will open a lot of doors for him.

Chris. tired that approach with 2 credit unions on my suggestion and both said NO. We need to see the income. It seems even many local banks in Florida are afraid to lend.

That sucks. In the past putting 100K on the line would open a lot of doors for you.

It sucks when someone has about 400K in cash, 100K in RE equity, over 740 FICO but since does not have 2 yrs W2, b/c self employed since July 09 he can no longer buy conventionally. And looking to buy below his means. He has no problem paying a $2000 a month mortgage but it looking to only finance 100K putting that figure around $700 or so.

I understand your frustrations, but these are new and different times as they should be. You can beat you head against the wall or embrace the changes and roll with them.

Its now law, or at least very soon will be law, that there are no owner occupied loans that will be made without proof that the borrow has the ability to repay the loan. Even though its not officially law yet, the lenders have seen this coming and they changed their guidelines to comply awhile ago.

I would suggest an actual private loan. Look for money through sources such as companies that administer their clients self directed IRA’s, these are some sources for money that private individuals use to invest in various ways to increase their ROI versus other options. I would Google it, it might just be that whole new world of funds that you have been looking for???

Good Luck

He should visit the small local banks and ask, “Do you have any troubled loans?”

He can get a house for the current debt or less and the bank keeps the bad real estate off its books.

My banker even approached me to see if I wanted some “troubled loans”. Now it’s just if that troubled loan house meets his expect6ations for a residence.



That is great advice.