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Lisa Heindel's Blog

Life, Fun and Real Estate on the West Bank of New Orleans

By Lisa Heindel | Broker in New Orleans, LA

No Documentation of Income = No Mortgage

There was some interesting information in CityBusiness this week about how fishermen, shrimpers and others in the industry are being financially impacted by the oil spill in the Gulf of Mexico.  Everyone is trying to determine how those who have effectively been put out of business or had their business adversely impacted should be paid.

However, according to the article, “sloppy and sometimes fraudulent histories of tax reporting among members of the fishing industry could deny many what they consider fair compensation”.  Cash income that was never claimed, poor bookkeeping that doesn’t provide the necessary information…these things may come back to haunt some of the people making claims against BP.

These same practices can have an impact on individuals who are applying for a mortgage to purchase their New Orleans area home.

Qualifying for a mortgage in New Orleans

We are a city full of people who have the opportunity to make a good deal of money “on the side”.  Just the fine dining restaurants alone support a large number of people (bartenders, wait staff, etc) and some of them are doing quite well financially even though they are skirting the law about reporting tips as income.  The problem comes when they decide it’s time to make a large purchase such as a house.

No documentation = No mortgage

Gone are the days of stated income loans, where an applicant just told the lender how much they make and the loan was approved.  In today’s world, documentation is the rule.  W2s, bank statements and tax returns are required to prove income and it doesn’t matter what you say you make, it’s what your reported income is that determines your ability to qualify for a mortgage.

Here’s my 2 cents of advice:  report all of your income.  Yes, it means that you will likely pay more in taxes.  But, it can make the difference between owning a home of your own or paying rent for years on end.


By Voices Member,  Mon Jun 21 2010, 11:09
We can get stated income loans done in several states. Max 70% LTV. Rates are low...must be very A+ borrower with liquid assets.

David@finance1online.com | Finance One Asset Management | http://www.finance1online.com

Private Mortgage Banking & Private Money Lending

We provide Stated Income/Verified Asset loans in Ca, Wa, Tx, Ge, NY, NJ: 60% to $1M, 55% to $1.5M, 50% to $3M; No Income/No Asset in CT, DE, FL, MD, MA, NH, NJ, NY, PA, RI, and VA; Jumbo loans nationwide 90% to $625K, 80% to $1.5M, 65% to $3M including non-warrantable condos (non warrantable); condotel (Condo Hotel, Condo-tel) to $500K, 70% LTV. Full doc loans up to $5M!

Visit Finance One Asset Management for more information.
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