Having problems with Lenders...Question!!!

[Mango]

...Shelly and a good deal of the free (and not-so-free) world call them "Liar Loans"

I'm thinking of breaking away from the pack....how does "Salary-Challenged Loans" sound?.

It's beats "Income Challenged"

 

[SSGA]

We were in a similar position some time ago and used our local bank that knew us personally. We had great credit and sufficient assets, so the less than 2 years wasn't unduly worrisome for us.

Of course we live in a town the size of my thumbnail and our banker had been my sunday school teacher when I was five-I guess he assumed some of that had sunk in and I wouldn't default!

My point is...do you have a local banker?

 

[Pirate]

Yes, some Banks/Commercial Lenders still have No Doc loans which is different than a stated income loan but you pay through the nose for it and must have impeccable credit. Stated income loans, you still have to list your employment, but not income and the rule is s/e >=2 yrs. No Doc you do not complete anything for employment or income on a loan application. With 50% down, even in a declining market, it's still a relatively low risk loan in my opinion and I am conservative.

I see Suntrust still offers NO DOC. I am not sure they will do it on a lot loan. I do not offer loans in FL, and Suntrust does not offer in the N.E., so I am not familiar with their programs.​

I think Shelly would call No Docs liar loans, but like I said I am conservative and have never had a loan default on payments, ever.
If someone came to me with in this predicament, they had impeccable credit, a past timely mortgage, needed to move, and showed me a contract of sale for their current home, I would feel comfortable with offering this type of loan if I didn't feel I could get it through traditionally.

Unfortunately in the past, these loan types and LTV's were too high and they were abused, hence the mortgage meltdown we are experiencing.

Thanks for the reply. I always defer to the experts. I surely didn't say this was a great product, I was only mentioning that with half down a low or no doc was still pretty easy to come by. Chrissy said they could come up with half so this may be an option. In the glory days, if you just had a pulse, 5 percent (or less) down and a 550 beacon you could get that 5 percent a year max escalation ARM easy. How the underwriters ever expected these things to get paid is beyond me but they sure looked great on a pie chart or graph.

 

[SHELLY]

How the underwriters ever expected these things to get paid is beyond me but they sure looked great on a pie chart or graph.

Underwriters couldn't care less if they were paid or not...they sold those suckers off before the ink was dry.


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[chrissy30004]

Yes, my hubby has a credit score of somewhere close to 780. The crazy thing is, even through the terrible market, the company he works for is not struggeling in the least! Yes, he works for a company, but he is an independant contractor for them. He pretty much just uses them for his paychecks. This company sells to mostly custom builders and even though it has definitely been slower, it is still doing wonderful!! We do own a home already, one here in gulf breeze ,and we own two rentals in Atlanta. He does not want to sell those because they make us money. I mentioned to him that we should rent something until the market gets better, but he wont have it. He says its throwing away money. He is also dead set on building our own home, as we have not found a home we like enough to buy that is already built. It has been a pain, but I know somehow it will work itsself out. We are even considering a co-signer, so we will see!!

 

[SHELLY]

Yes, my hubby has a credit score of somewhere close to 780. The crazy thing is, even through the terrible market, the company he works for is not struggeling in the least! Yes, he works for a company, but he is an independant contractor for them. He pretty much just uses them for his paychecks. This company sells to mostly custom builders and even though it has definitely been slower, it is still doing wonderful!! We do own a home already, one here in gulf breeze ,and we own two rentals in Atlanta. He does not want to sell those because they make us money. I mentioned to him that we should rent something until the market gets better, but he wont have it. He says its throwing away money. He is also dead set on building our own home, as we have not found a home we like enough to buy that is already built. It has been a pain, but I know somehow it will work itsself out. We are even considering a co-signer, so we will see!!

One thing that jumps out at me is how you put so much emphasis on your "hubby's" credit score being so great...I'm sensing that maybe you're credit-challenged and that may be part of the problem.

Also, are you going to try to sell off your home in GB? Is there a mortgage on that as well? That might be another problem. Or it can be a solution if you've got any equity in that, or the rentals, that you can "harvest." (But I'm sensing that there is very little, if any, equity in any of these at the moment.)

If all is going so well, maybe you can just cut back on some of the "bells and whistles" for a couple of months and pick up a part-time job to scratch together a mombo down payment or pay the total outright--of course that doesn't help with the construction loan that will be forthcoming.

It's clear that the lenders are convinced that you're already overextended on debt...take this as a positive sign that is keeping you both from getting in over your heads as the US economy heads for a recession (which I believe we're already in).

And as for a co-signer--I wouldn't touch that with a 10-foot Pole (or a 5'8" German).

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[chrissy30004]

One thing that jumps out at me is how you put so much emphasis on your "hubby's" credit score being so great...I'm sensing that maybe you're credit-challenged and that may be part of the problem.

Also, are you going to try to sell off your home in GB? Is there a mortgage on that as well? That might be another problem. Or it can be a solution if you've got any equity in that, or the rentals, that you can "harvest." (But I'm sensing that there is very little, if any, equity in any of these at the moment.)

If all is going so well, maybe you can just cut back on some of the "bells and whistles" for a couple of months and pick up a part-time job to scratch together a mombo down payment or pay the total outright--of course that doesn't help with the construction loan that will be forthcoming.

It's clear that the lenders are convinced that you're already overextended on debt...take this as a positive sign that is keeping you both from getting in over your heads as the US economy heads for a recession (which I believe we're already in).

And as for a co-signer--I wouldn't touch that with a 10-foot Pole (or a 5'8" German).

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Someone previously asked me how my "hubbys" credit was and I answered their question. The reason I asked the question here is because I am just amazed that we are being rejected with a credit score as good as his. I put so much emphasis on that because it is what it is, and I thought an awesome credit score would atleast get us somewhere. I am not here pretending to have a wonderfull credit score, not sure why anyone would do that.
We will not try and sell our home in Gulf Breeze because we would take a loss. We moved here when the market was hot and we would never get our money back. We do have equity in two of our homes and we can take it out, and we probably will. Right now that is our game plan, to take equity out of two of our homes and put hopefully 50-60% down, leaving my father or his father to co-sign for a fairly small loan. This was not our first choice, but making an 1 1/2 hour drive one way every day is getting the best of him. If we were overextended on our debt, we would surely get out of at least one of the rental properties we have in Atlanta, unfortunately thats not our problem, its the new business issue. We have gotten a couple of private messages from people who were in similar situations, and that has helped us TREMENDOUSLY! So we will see from here.
Thanks for everyones advice
Chrissy