Posted by qstaff on August 18, 2003 at 21:52:58:
Okay–I admit to being the queen of conventional loans–even though I’m none too keen on banks myself. That said, if you have mad high credit, you can get a no income verification loan. But essentially, a bank is looking for proof of income—if you are self-employed–we hope you are generating an income, too. But if you go conventional in terms of mortgages, you have to provide a financial statement (yours or your company’s, 2 years income taxes, last two months bank statements, leases and whatnots for your properties, and various and sundry proof of liquids and assets.
Now, I use conventional financing because my circumstances are no doubt different than many investors on this board. First, I’m part time. Also, I live and work in Connecticut but I do my investing in a very economically depressed area in Virginia. This is in no way a hot real estate market and time usually isn’t of the essence. Moreover, it takes me less time to get a conventional mortgage than to put together a deal down here–because I’m not down here (my mother manages my properties–and…well, that’s another story.) So for my situation, conventional mortgages have been fine and I also have enough credit to pay cash if something really swell comes along. But if you’re already doing subject to flips, etc., and you’re in the area of your investments why would you want to fool with banks except to secure a nice credit line?