question for lenders or brokers........

If I quit my job and go into RE full time how do I acquire loans for my personal residence? My LLC has only been open 8 months so financials would be hard to produce. Would I have to do a stated loan and get hit with higher interest rates? Our house is on the market so I don’t want to put my family in a pickle if I quit, we then sell our house, and now were in a bind cause the bank won’t finance our new home due to lack of financials from my business. Any help is appreciated,


Hey Nate,

In order to qualify for a stated or no ratio loan you would need a 2 year history of self employment. You mentioned that your LLC has only been open for 8 months, have you been involved in rei prior to that?

If you do have a total 2 year history of rei then you could potentially use this as income to qualify on your primary purchase. If you have been filing taxes then a CPA can verify that you have been self employed. There may be assets needed as well.

In the case where you have not had a 2 year history a NIVA (No Income Verified Assets) may work or if you don’t want to show assets, then you may be able to qualify for a no doc loan. Caution is advised when considering your overall plan.

Obivously your credit scores are the main factor.

A very vague question here but what do no doc loan rates usually run? I don’t have two years of history so I’m looking for options in case this does happen. For fun my middle score is a 740.


Depends what ltv your looking for.

This was your primary, correct?

I recently closed a borrower’s primary residence 100% No Doc loan at 6.5% I/O on his first (30yr fixed) and 11% on his second at a 681 fico score.

Hope this gives you a general idea. Basically you will have no problem qualifying for a decent interest rate at 100% financing with NO DOC. Hope everything works out for you.

Yes this is for my primary residence. Mortgage Mark…

Interest only on a 30 fixed? Why on earth would they do that? Different situations for sure and they can always pay on principal but that seems risky. 11% on a second lien? Wouldn’t they have been better off just doing a full first lien?



What was the ltv you were looking for?


probably 90 or 100%

I/O on 30 year because he didn’t want to worry about the interest rate adjusting on him. the I/O period lasts 10 years and allows him a lower required minimum payment. During which time he will either refinance or sell anyway, but at least his payment remains the same.

a single loan up to 100% is unattainable, so that was not an option. 11% was very reasonable considering the fact he ran this as a No Doc loan.

The rates that Mark mentioned previously seemed within reason. Hard to point out if this a goog idea without a complete consultation.

Just curious, in previous emails you have referred an acquatiance of yours that is a mortgage broker to other investors. Was he not able to assist you?

Depending on what you do for a living, I wouldn’t go quiting your job. This seems to be overlooked here. If you are a beginnner in Real Estate Investments — try and do both until you acquire enough properties to justify leaving a stable position in the field of W2 employment. If that’s your main source of income, and you are ready to drop it, I’d think a better consultation would be to reconsider your dive into buying real estate. Many things can go wrong in this business and you can become penniless quite abruptly.

Take heed to the loan officers advice in this forum. Be aware that there are many loan officers who can care less about your overall well being in order to earn your business.

A “no doc loan” tells me, you have no assets, no income, and no employment to verify.

Oh it’s easy to sleep at night knowing I’ve helped my investors get into loans they needed to continue their business. I just answered his question as to how he can get a loan if he quit his job. The no doc program works well for someone who doesnt have 2 years in the investing world, doesn’t have a current job, and cant provide any sort of income documentation.

That was a very naive comment and I’d appreciate a little more respect in future posts.