Bill, Home Buyer in spugadiccio

I know things have changed alot , but are there still no doc or really easy to qualify loans available at

Asked by Bill, spugadiccio Sun Jun 28, 2009

good rates - if you put maybe 50% down ? If so , what kind of rates for 15 year fixed loans could I get in the huntington beach area with say a $400k downpayment on an $800k home - again, assuming I don't want to use any tax returns . I have a fico of around 800.....

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Emily S. Kne…, , Rossmoor, CA
Thu Jul 2, 2009
There ARE stated income programs available at 30% down. Your credit score does have to be pretty high though, 800, obviously good enough, I think the min. is 720+. This program was available about a month ago. It's when people have low credit scores, but have $ they run into problems.

For a short example: I had a client with a very successful business, he was renting a home for $7,500/mo. & had 50% to put down on a home, yet his credit score was about 480. The bank said No Way, even with 50% to put down.

If you'd like me to double check with my lender with 30yrs exp, I'd be happy to find out for you if you can get away with not providing tax returns.
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Kelly Temple…, , Huntington Beach, CA
Mon Jun 29, 2009
Valid comments, Bill. I am aware of the high down payment requirements of other countries, and have been around long enough to remember when we couldn't buy a home without at least 20% down. It has always struck me as odd that so much emphasis is put on verification of the last two years' income for traditional mortgage approval since there is no way for banks to know whether the homebuyers will have a source of employment even one day after the loan has funded. One would think that banks would consider having 50% equity in a property to be such a low risk that proof of income wouldn't be necessary, but that is sadly the way it is for "A" paper loan products. Please keep your chin up and scour the list of homes for sale for sellers willing to finance the loan. It's such a buyer's market that there will be sellers out there willing to do this, and they'll have a better return on their investment than they can get anywhere else with no risk assuming the 50% equity stake they have initially. Good luck - let me know if you have any other questions.

Kelly Templeton
Clarion Mortgage Capital
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Bill, Home Buyer, spugadiccio
Mon Jun 29, 2009
I don't want to sound over angry but this is totally bogus. The whole mortgage / banking / economic meltdown we are having was not caused by "easy credit" or variable , interest only, exotic , no doc, or other mortgage types it was caused by one thing , and fueled by that one problem alone...that is :
ALLOWING PEOPLE TO PURCHASE properties without a down payment of at least 25% of Their OWN MONEY @!!! I've been to many parts of the world and most countries with stable real estate would not even consider letting someone purchase a home without 30% down of THEIR OWN MONEY !!! If you have a substantial downpayment in most countries they could care less about your income, job or anything else as long as they don't lend out over 70% of the purchase price .... Just think in the US if we followed those rules... the home prices would never have skyrocketed and we would not be in the mess we are in ... the pitiful thing is after all we have been through people can still buy a house with 10% down or less ...based on a job and income that is more precarious than it has ever been in this countries history . What a bunch of dummies we are.....
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Kelly Temple…, , Huntington Beach, CA
Mon Jun 29, 2009
Hi, Bill:

My answer below is accurate based on your specific question. I'm a direct lender based in Huntington Beach who works for the largest direct lender brokerage in the U.S. We have over 40 different investors. Up until two weeks ago it was still possible to obtain a loan with no income documenation from only one investor in the country, but they withdrew their stated income loan as well. I know that it's extremely frustrating for someone with excellent credit who is willing to put down 50% on a home purchase and still find you can't get traditional financing, but the current mortgage meltdown has caused the pendulum to swing way too far to the conservative side. Feel free to check around, but everyone needs to understand that this is currently the way it is. You could obtain a private money loan with as little as 30 to 40% down, but the interest rate associated with it will be very high and the fees to obtain the loan will be costly as well. I would suggest finding a motivated seller who is willing to finance the loan. With a 50% down payment I am confident that you could find a seller willing to finance the other 50% for a rate comparable to what is available from traditional banks, and considering how low current CD and money market rates are, you could probably get a rate even more favorable than what banks are offering. Best of luck - feel free to contact me with any more questions.
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Jeremy Lehman, Agent, Garden Grove, CA
Mon Jun 29, 2009
I wouldn't rule out your ability to get a loan. With 50% down and great credit, it's worth the effort of shopping around. Certainly a direct lender is a great way to get started. If that doesn't work out, Use the 400k to buy a property with a great discount. I just represented an all cash buyer and got them a big discount off of the asking price and closed in 15 days.

Good luck,
Jeremy Lehman
Century 21 Beachside
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Kelly Temple…, , Huntington Beach, CA
Mon Jun 29, 2009
Unfortunately there are no loans currently available from any traditional banking institution currently. Hopefully this will change in the future, but even with your excellent credit and plans to put 50% down on your home purchase you would have to obtain a "hard money" loan with high interest rates and origination fees unless you can document that you have enough monthly income to pay your monthly mortgage payment on the new loan amount you wish to obtain. Hopefully things will change in the future, but for now that is the way it is.
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Karen Parsons…, Agent, Laguna Beach, CA
Mon Jun 29, 2009
HI Bill,

I've heard there are....but haven't used one with any of my clients for a long time. The good news is you are putting 50% down and the loan amount is going to be under $417,000 (the magic number). I would suggest you talk to a mortgage broker get some information. They have access to loan programs all over the country. Direct lenders will only offer the specific programs they themselves offer.

If you do find a program through a mortgage broker.....then I would go the extra step to get underwriting approval and make sure you have a solid mortgage committment before shopping for the house to avoid disappointment.

I do know of a great mortgage broker, if you need a referral.....shoot me an email and I'll get you a phone number/email for her.

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Dot Chance, Agent, Burbank, CA
Sun Jun 28, 2009
Bill, Marie Richarz from Prospect Mortgage would be a great one to ask this question of. Her phone number is 818-359-4779. They are direct lenders and mortgage brokers. Marie is great at what she does.

The 50% downpayment should help and congratulations on your really great credit score.

Happy homehunting!
Web Reference:
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Vivian Young, Agent, Huntington Beach, CA
Sun Jun 28, 2009
Dear Bill:

Call Wells Fargo Bank, Bank of America or any other direct lender for an accurate mortgage quote based on your income, assets, debt to income ratio and current verified credit score. Any other non mortgage lending source would not be accurate or reliable.
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