Financing in Goodyear>Question Details

Tommy, Other/Just Looking in Goodyear, AZ

I have excellent credit 700 and 700 k plus in cash. I am working overseas and I am returning to the US in March. Can I qualify for a loan?

Asked by Tommy, Goodyear, AZ Sun Feb 5, 2012

I will not have job when I return to the US but will be looking for work!

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Answers

9
* Loren Hoboy *’s answer
The credit element for buying a home are a combination of credit score, your debt to income ratio and the lender requires taht your income has the likelihood that it will continue for at lease two years. That makes it impossible for someone to buy a house that has quit their job to move to a new location unless they have the new job (must be in the same field of work). The lender does not care or consider if you have large sums in the bank

But there are loans for US Citizens (and some foreign nationals) who are buying a 2nd home. Income verification and credit checks become an issue if the foreign country is not in the Commonwealth. The borrower would need to do a conventional loan and have sufficient income to pay both their current rent or home loan and to pay the 2nd home loan. Please email me at LHoboy@CentralAZHomes.com and I will send you the contact information for a lender .

Another option is for us to find you a house where the seller is willing to finance your purchaser. Usually you put down 25-35% and the seller will loan you the remainder for 3-5 years(more sometimes). Interest rate is negotiated and terms currently vary from 5% to 10%. In this case you could probably re-finance in 6 months using a conventional loan if a new job supports the loan.
0 votes Thank Flag Link Mon Feb 6, 2012
Tommy,

Of course loan amount will come into play here, if are trying to keep loan amount to meet Fannie/ Freddie guidelines 417K in most areas ( little higher in other parts of the country), The answer is yes/ maybe / not sure.

Yes -700 credit is great and tells lenders you pay your debt , now for the maybe, The DTI ( your Debt to income ratio ) with out a job there is no ratio -right ? NOPE ..not right. See Tommy you have 700k cash in the bank you have options on the DTI.

Say you wanted a to purchase a home for 500k you put 20% down and need to finance 400K - the lender will source the 100k down and most likely it comes from the 700k leaving you with 600k .

Lets say with new mortgage, insurance , taxes , HOA fees 400k is apox 2500 month and your other debt, credit cards, automobiles, boats, ect are 5k a month. giving your 7500 in total debt.

FNMA has a standard it likes to try to meet no more than 31% of total income to house payment and no more than 45% of income to service all combined debt.

with the above debt you need appx 17k month in verified income with it likely hood of continuance for three years after fist mortgage payment is due. Or 204k yearly

Tommy go your banker set up a payments to yourself like annuity if you will for the 17k from the 600,000 plus you have in the bank . Have bank put on there letter head of such payments will continue for 3 years have the first payment deposited and before the 1st mortgage payment the 2nd deposited.

This will meet FAMA guidelines and and Mortgage banker with more a year experience in putting loans together can get this done for you.

The not sure ----- well a loan today is more than score and income, if there is more and it comes out in uw process, like tax judgement ect these will have to be addressed I hope this is helpful
0 votes Thank Flag Link Mon Feb 6, 2012
Tommy,

You have options for sure. If there is a blip on your credit it could slow you down. I always say, "you don't know what you don't know". I would do one of two things.

1) Contact Matt Maret of People's Mortgage and have him start a loan application on you. He's been in the business for 20+ years and is very good. mmaret@peoplesmortgage.com, http://www.TheMaretTeam.com, Office 480-752-3530.

2) Pull a free copy of your credit report by going to this website. Often times people find things on their credit report that are not theirs. It won't give you a credit score. Don't waste your time with any of those free websites. The only way to get a true score is to contact a loan officer. https://www.annualcreditreport.com/cra/index.jsp

Give me a call or email with any other questions.

Jason Fleming
623-910-4994
0 votes Thank Flag Link Mon Feb 6, 2012
Hi Tommy

I am a Realtor. When you get to the states, give me a call and I will give you a couple of lenders to call. Only a loan officer can answer that question, which would require more than a quick answer. In the meantime, I can email you a list of properties that are active on the market, in your preferred areas that match your criteria. Alot of buyers are cash buyers. It may be to your benefit to weigh out financing vs. cash.

Patricia Van Houten
Diamondback Realty
602-323-7777
0 votes Thank Flag Link Sun Feb 5, 2012
Hi Roland:

Well, I couldn't stand the wait, so I looked you up. What an interesting guy you "sound" like, though I have not heard your music. (Others, look up http://www.thebardrocks.com)

As I said, I grew up in Syracuse, and see your broker is located in Howe Cave, NY. Howe Caverns is one of my favorite memories as a kid. I still can picture being down underground with all the water and fabulous sights. It was one of the reasons I went on to get a Geology degree at SUNY at Cortland.

Next time you make it out to Arizona to do some cave exploring, maybe we can get down to Karchner Caverns!

P.S. Thanks for asking the quesion, Tommy!
0 votes Thank Flag Link Sun Feb 5, 2012
Yes, if you have access to the internet, I would be glad to give you access to a loan officer and you can get the process started. There are certain documents they will require, but they can run your credit. And, if you have a spouse or family here that can provide banking statements, etc. They can get the ball rolling. And they will discuss utilizing your VA or other loans available.
0 votes Thank Flag Link Sun Feb 5, 2012
Hello Again:

Just to be sure we are in agreement, "a good excuse", Tommy, will not get you a loan, even if a bear "goes" in the woods! (lol). That is, if we are talking about Fannie/Freddie or FHA loans, a job is essential. Sure, I can get you a Private Money loan with my company, for example, but you are going to pay 12% and a few points (each "point" represents 1% of the loan amount), until you can show a steady source of income and qualify for a "normal" loan.

Roland--I am from Syracuse. Where is Strakers? Go Giants!!
0 votes Thank Flag Link Sun Feb 5, 2012
Is the Pope Catholic? The only thing you have missing is the job and you have a good excuse for not having one.
0 votes Thank Flag Link Sun Feb 5, 2012
Hi Tommy:

I always write about the four pillars of lending (CCIA):

Credit: Yes, 700 will get you any loan you want, which is available;
Collateral: Just means the home you want to buy has an appraised value equal to the purchase price;
Income: There are no more Stated Income or No Doc loans in the US these days. This means you will need to find a job and, at least, get your first pay stub in order to close the deal. You can start looking, and we can even begin the loan process before you get your first pay check, but we could not close until that piece of paper is in hand.
There are exceptions to this rule, if you are in a profession where the employer will basically GUARANTEE you will have a job (hospitals, CPA firms and Law firms are some examples of professions which will issue employment contract letters).
Assets: Assuming you are buying a "reasonably" priced home, $700K surely will qualify you in this arena.

Give me a shout, and we can discuss this further. March is just around the corner...great time to be coming back to the Valley of the Sun. Where are you coming from?

Bill.
0 votes Thank Flag Link Sun Feb 5, 2012
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