Income verification for loan - Posted by Lily Henderson

Posted by Lily Henderson on September 17, 2003 at 22:34:02:

Thanks so much for the pointers, now I have a good guideline on what to look for. Getting grilled by community banks haven’t been a enjoyable experience so far.

Income verification for loan - Posted by Lily Henderson

Posted by Lily Henderson on September 16, 2003 at 21:52:38:

Mr. Garcia,

Thanks for your compassion in helping out so many people who are starting. I found a pre-foreclosure deal by walking through a garage sale 2 months ago, owner was trying to clean up personal properties to vacant house before selling. I pass my business card and blank offers. After putting up the house up for sale for 2 months now for $470K and no takers, I followed up and neogitated deal as follows:

FMV 470K
Loan owed 300K
Owner is a ex high-tech worker,lost his job and looking to transfer to another state, payment is $10K behind.
Negotiated price: 352,500

Haven’t signed contract yet. I am clueless on what mortgage I can qualify, based on my situation as follows, should I get a NIV, NAV or No Doc NINA? I have been on unemployment insurance for one year and just started a new job as insurance agent a month agent. Average FICO 710, liquid asset/bank statement $15000, also some asset in 401K.

Other questions:

  1. How long would a typical No Doc loan take(I’m in San Francisco, CA)?
  2. Based on a message here, I learn lender will probably ask employment history of 2 years. Is it going to be for the recent two years? I can provide tax file for 2002 and 2003 with average income of 50K to 60K. Also, does unemployment insurance count as income for lender?

Much thanks.

Re: Income verification for loan - Posted by mjohnson

Posted by mjohnson on September 17, 2003 at 11:00:58:

you should probably check into either a bank statement loan (where they look at the last 12 months of bankstatements to determine your income) or a no documentation loan. the bank statement loan might be tight because your DTI cannot be more than 50% on an ARM or 55% on a fixed. i would go with a no-doc loan because with your credit score, you could probably get 90% financing at around 8.5%. that would put your payment at around $2,700 before taxes or insurance. and no, a lender will not use unemployment because you have to have a 2 year history and there has to be a good chance of continuance. so since unemployment is supposed to be short term, they will not count it.