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Previous two yrs no income - effect on mortgage

Posted on: 10th May, 2007 10:40 am
I had a good job and income till 2004 and a house ( income in six figures yr) , but I left my job and sold my house and travelled all over the world for 2 yrs .. that time I had only 15-20K interest income per year. Now from 1st January 2007 I have taken a parmanent position again ( salary in six figure ) and planning to buy a house again. When I am talking with different lenders they are saying that the amount of loan I can get depends on my avg income for last two years .. that way I will not get any decent amount in loans and I don't want to take any no-doc loan.
Does anyone know is that normal and what are my options ( I am planning to do a 25% down payment on a 300K home) ?
Yes most lenders require you to have a job in the same profession for the last two years. As you were not working for the last 2 years, stated income verified assets loan (SIVA) will be suitable for you as for this type of loans your stated income will be taken into consideration when you apply.
Posted on: 10th May, 2007 11:40 am
I have heard about mycommunitymortgage from fannie mae in which different source of incomes are allowed to get approved for mortgage. You can look into it.

Demarchelier
Posted on: 10th May, 2007 03:53 pm
Hi Chiku,

Welcome to our forums.

You can go for stated income mortgages meant for people who work but do not regular salary. This includes mostly self-employed people. For this type of loan, you need not prove your income by providing the W-2 forms and paystubs. You can also try for NINA loans (no income and no asset verification). Then there are no ratio loans for which the lender does not compute the debt to income ratio, hence even if you do not have a good employment history, there is still a chance for you to get a loan against your home.

To know more about Nina loan and No-ratio loan, read through our community discussions. And, if you have any related query, feel free to come up with it.

Good luck
Posted on: 11th May, 2007 09:39 am
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