GREAT CREDIT-NO JOB ?
Hello this is my first time to this site. I am looking for a 2 Unit Investment property in Chicago perhaps with a livin basement that I can live in while renting the other two units.
I left my job 3 months ago and havn't worked since. Last year I made $60 k and when i applied for preapproval 4 months ago my credit was so good that they told me I qualified for 5.6% with 0 down on a $460 k 2 Unit.
I didnt buy anything because I left my job a week later and went to Europ for a month. Anyway, now I am back but havn't started working yet but I want to get into a property ASAP!! My credit is over 700 and I have 14 months of rent checks for $1,350 that I can give as proof of funds. Also, at this time I only have $2,000 in the bank but I am expecting $5k - 10 k in the next 2 months.
I am guessing that I may be able to do a no doc loan and/or use 60% of rental income from 2 Units to qualify or my rent checks???
My question is do I really have a chance of getting approved with no job and only $2k in the bank? Like I said I have over 700 credit and also $30 k available at 5% by use of my credit card checks.
Should I wait until I get a job? Can I still get a decent interest rate with a no inc ver loan?? Thanks for any replies. :-?
it'll be much easier if you get a job 'cause that's what the lenders' formula says, but i don't think it's not doable given your good credit score. There are plenty of no doc or low doc loan programs available, only with a higher interest rate. As long as your numbers can work out with the higher rate, you can buy the 2-fam right now. Certainly you always have the option to refinance later on when you get a job. Good luck then!
I know people who have gotten a mortgage being in a very similar situation.
Just do a stated income loan. Maybe a reduced doc would work also if showing 2 years taxes and reserves in the bank is not a problem for you.
As a general rule, I would not tell your broker anything they do not specifically ask about. No need to volunteer you are not employed. Be careful about falsifiying info though.
As I always have to get stated loans due to being self employed I usually can get 100% financing in the 6's. If only mortgaging 80% I can get a 1.25 option arm. I think you could get the same with over 700 fico.
I usually don't get too excited about a high mortgage anyway as I turn around in a couple of months and refi for a lot less.
Just my thoughts.