Refinancing My Own Home...but Currently Unemployed...options?
I'd like to refinance my own home to pull out cash to fund deals, when the opportunity arises. I have a balance of 11k and a second mortgage of 14k FMV is 120k+
However I've been unemployed for a few months now. My FICO is 720 Equifax/727 Experian. What kind of rate can I get...or can I even refinance w/no employment? How much can I refinance to?? [ Edited by snek11 on Date 12/18/2003 ]
I know you can do stated-doc/stated income refi(where you state your income but no employment verification). However, I don't know if the same rules apply when you cashout a mortgage. Better consult a mortgage broker.
No doc is very misunderstood. Stated income/stated assets avoid documentation like tax returns, etc...
However!!!!! Little known fact - the lender will call for a verbal verification of employment prior to funding the loan.
There are many ways around this - some of my wholesale lenders offer programs with employment verification based on your credit score and the LTV. Most lenders (like Washington Mutual and Countrywide) don't offer these special programs retail (to consumers) - but only offer them wholesale (to Brokers).
Other option - get a friend to take the call. Best wishes!
Wow, that's a good tip. Do you know how extensively they verify for employment? What are they going to ask on the phone, or is it really quick?
I recently refinanced and cashed out on my home. I had $81,000 in equity and borrowed the max permitted, but not to go over an amount I could sell it for quickly if I have to bail. Some companies that contacted me were willing to finance 100% of the MV, but the fees were way high.
I also could not prove income, as I'm self employed. We based on stated income. My interest rate was higher due to that fact. No income tax forms were requested, just proof of my self employment and personal bank statements. Average to low FICA.. The only person who asked me about my income was the mortgage broker.
I went through a mortgage broker.
Most of my clients when as per their occasional status, find themselves unemployed take the no doc specials and describe themselves as self employed. Lets See Now. There is Economic Adjustment Consultant.
Pre Production Accounting Consultant
Corporate Portfolio Analyser.
Digital Display Technician (I think he extends a single finger and makes comments on it.).
If your Fico is high enough and you invest in mostly highly speculative non listed issues you are there.
I am getting ready to give Full Recourse to lenders who will be making a series of loans to purchase low income houses by low income families who have limited deposits in banks and even more limited hoards of cash in their mattresses and piggy jars. They are requiring all sorts of information. Perhaps I should have extended my days as a bank employee. NOT.... Of course I could turn this all over to a HUD program, but I am not happy with the way they have financed large projects which have in time turned into slums and training grounds for guerilla warfare.
I hope this has been helpfull Lucius
Verification of Employment - When going no doc or full doc (any loan whatsoever), the lender calls the employer you've stated on the 1003 (loan app) and verifies the following a day or two before closing:
1. They run a reverse phone # lookup to verify that the company is legit
2. They call and verify that you currently work there and confirm your title/position
3. They verify how long you have been employed there (and cross check with what you stated)
4. They ask if your employment is likely to continue there
There is no verification of income. What the lender really wants is a steady 2 year work history in the same FIELD. Experienced Mortgage Brokers know how to angle your employment/title to reflect this.
Most importantly, they want to confirm that you didn't lose your job between the time you signed the loan app and funding the loan.
Hope it helps!
Your best bet would be a no doc loan, in this case nothing is verified. Stated income allows you to state your income, but they will still want to verify that you are employed. It may be tempting but don't get yourself involved in fraud, i.e. getting a friend to take the call for verification of employment, they will come down on you VERY HARD if this fact is ever discovered, you are better off just doing no doc.
Ok so, I'm getting conflicting answers here...
If I go NO DOC...are they going to call to verify or not??
For stated income they will call, for no doc they will not. You do not even list any employment or income information. If you are interested I can help you with this, send me a private message. Thanks.
No Income No Assets (NINA) loans work in these situations. There is nothing to verify. Stated is different because they verify that you ARE employed but not how much you make. For example, you could be a teacher and state that you make 100K a year. For unemployed people like yourself, a NINA loan works. The rate is higher than a coventional loan of course.
I am a broker...let me know if I can help.
Ok just want to clear up different kinds of programs. First full doc, everything is verified as the name would imply. Then there is stated income. Income is stated not verified, but has to be REASONABLE for the profession (so teacher stating 100K would not fly), assets are also verified. Then there is no ratio, where income is not put on the application at all, but employment is verified (in this case teacher making 100K is fine as income is not a factor), assets are also verified. Then there NINA, in which neither income or assets are verified, but actual employment IS still verified. Then there is no doc where nothing is verified. So if you are truly unemployed No Doc is really the only way to go. Hope that clears everything up. Thanks.