I will call you Ken. I like to know how much higher are the rates going to be and the
Terms of the transaction.

Thanks for nuggets of wisdom folks. This is great and let us just hope the economy
and housing pick by spring next year.

Hi Rui- You're rental theory would only work if you do in fact rent it out, which it doesn't appear you are. And on a single family home, the rental income almost never covers the expenses on the property, including the mortgage PRIN and INT payments...
We do business with 1 niche lender who DOES do stated income/ verified assets loans- so that is a possiblity. But the rates are going to be higher than what the typical market rates are. If you'd like more info, please contact me. Thanks,

Ken L.

What about a commercial loan folks? I am told they do not much care for the income but
want to make sure the rent on the property (let us say I am buying this as something I plan on renting out)
will cover expenses. The downside is you need something like a 25% down, pre-payment penalty,
and will get a 5 or 10 year fixed. Which is fine since I do plan on getting employed once this economy
turns around.

Rui,

If you can afford to pay cash for a home, this is clearly the best route to go....on the other hand, if you are not willing to part with the capital you currently have other options must be explored.

The likelyhood of a lender providing a loan to an unemployed individual are very slim regardless of what assets are. These are times of accountability for lenders as well as borrowers and banks and their lending practices are under close scrutiny.

Many people in your similar situation are seeking a "lease purchase" arrangement that allows them the best of both worlds by renting with an agreement to purchase the property. A percentage of the rent is normally credited toward the agreed purchase price.

Good luck

You should speak to your bank, credit union or a qualified mortgage broker to best answer your question. Lenders will look at all your paperwork (W2s, tax returns, assets, etc,) but they most want to know the likelihood of FUTURE ability to pay and compare your debts and liabilities to cashflow. Good luck. Cleo Pappas at CallCleo.com