Posted on: 17th Jul, 2008 10:31 am
Hi, I recently sold a business and am now starting another new one so my income from the new venture is minimal. I am living off the sale of the business proceeds. I have a investment property that I want to get a HELOC on so I can make some home improvements to the house. I owe $94,000 on the home and its worth around $275,000. My credit score is 850 my wifes 780. I am looking for a no doc or some loan that will not ask for my current business income is minimal. What type of HELOC should I go after and what can I expect. Thanks
hi mdz,
unfortunately, the no doc or stated income mtg options have all but disappeared. the good news is that your scores are excellent, and you ltv is low, so you may have some options.
however, throwing the investment aspect of the property into the mix will make it challenging. your best bet, (although it isn't what you would probably prefer to do) is to look into a cash-out refi, which means you would refinance the whole note instead of just doing a second. seconds have become very difficult to get, and stated investment seconds are history. and that is why, if you really need to do these repairs, you will probably have to look at refinancing the whole balance. (or use another of your credit lines to finance it)
i would recommend that you start with the bank that you do the most business with...with your high scores, it is possible that if they run you through the automated underwriter system that it will not ask you to document your income.
good luck!
kim
unfortunately, the no doc or stated income mtg options have all but disappeared. the good news is that your scores are excellent, and you ltv is low, so you may have some options.
however, throwing the investment aspect of the property into the mix will make it challenging. your best bet, (although it isn't what you would probably prefer to do) is to look into a cash-out refi, which means you would refinance the whole note instead of just doing a second. seconds have become very difficult to get, and stated investment seconds are history. and that is why, if you really need to do these repairs, you will probably have to look at refinancing the whole balance. (or use another of your credit lines to finance it)
i would recommend that you start with the bank that you do the most business with...with your high scores, it is possible that if they run you through the automated underwriter system that it will not ask you to document your income.
good luck!
kim
Hi MDZ,
Welcome to our community forums.
With the crisis in the subprime market, no doc loans are scarcely available. However, considering the credit scores that your wife and you have, probably you can get qualified for no doc loans. By the way, why do you wish to go for no doc loans? Is there a problem on your end regarding signing the 4506 form?
Regards,
Jessica.
Welcome to our community forums.
With the crisis in the subprime market, no doc loans are scarcely available. However, considering the credit scores that your wife and you have, probably you can get qualified for no doc loans. By the way, why do you wish to go for no doc loans? Is there a problem on your end regarding signing the 4506 form?
Regards,
Jessica.
I have the cash to pay the loan as I am living off the proceeds of my business sale. I just don't have the employment income to show, meaning limited self employment monthly income I can show as I am starting another business. I can only document what is in my bank accounts. I was assuming because of this I would have to file a no doc loan.
Matt that is correct however what has been leuded to in previous posts is that these loan no longer exist. You may be able to secure a hard money loan with no income but it will be costly and just a temporary loan.
They will require a large equity position to guarantee the loan. Most will not go above 60% these days. They charge 3-4 points in origination and have a higher rate. The reason is they make their money by getting and getting out of the loan. They want you to pay them off so they can turn the money again. They would want you to refi the first as they do not like 2nd position.
Other than that youy may have to just use your own money.
Good Luck
Brian
They will require a large equity position to guarantee the loan. Most will not go above 60% these days. They charge 3-4 points in origination and have a higher rate. The reason is they make their money by getting and getting out of the loan. They want you to pay them off so they can turn the money again. They would want you to refi the first as they do not like 2nd position.
Other than that youy may have to just use your own money.
Good Luck
Brian
I have a situation where I was on unemployment for two years prior to 2011. This year I have been doing Daycare and house cleaning and with bank statements can show how much my monthly deposits are along with contracts from the people I do daycare and cleaning for. I want to refinance to secure a better loan and take $35,000 of my $70,000 equity I have in my home. I have been in this house 7 years. My credit score is 750 and I have never defaulted or been late on a loan. This is my second house I have purchased and I have had three HEL that I paid off early. My past history, credit score and equity should be enough but everyone wants 2 years of tax returns - all that is going to show is that I was on unemployment. Now that I have better income and can prove with my bank statements, no one will work with me. Any suggestions?
Hi Rene,
It is true that everyone will want you to show 2 years of employment history. Unless you're able to show that history none of the lenders will be ready to offer you a loan. They will consider your previous unemployment and won't work with you. I will suggest you to wait for 2 years so that you have a positive employment history and then apply for a loan.
Thanks
It is true that everyone will want you to show 2 years of employment history. Unless you're able to show that history none of the lenders will be ready to offer you a loan. They will consider your previous unemployment and won't work with you. I will suggest you to wait for 2 years so that you have a positive employment history and then apply for a loan.
Thanks