No doc loan or investment property loan?

Asked by HappyHome, 94704 Sat Oct 13, 2007

This is related to the SF Bay Area. I am looking at duplexes, cannot document my income with paystubs but have excellent credit and abundant assets to make such a purchase. What's the best way to find the ideal loan for me (as a primary residence or as an investment property)? I'd be living in one of the units. Thanks

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6
Jim Walker, Agent, Carmichael, CA
Sat Oct 13, 2007
For the first part of your question: Even though you don't have paystubs, you may be able to document income through "alt doc" (aternative documentation) - one common method of alt doc is to supply enough bank statements to show that sufficient money flows through your account to pay the new mortgage and your living expenses.
1 vote
Jim Walker, Agent, Carmichael, CA
Sat Oct 13, 2007
My opinion: Buy as an owner occupant. The rate and terms are much better for you as an owner occupant. Your intent to occupy one of the units is the requirement for the owner occ loan and you state that is your plan. You would have to buy with an investment loan only if your intent to occupy was not believed by the underwriter. Be prepared to prove your intent.
1 vote
Steve Larson, Agent, San Jose, CA
Tue Oct 30, 2007
If you are living in one unit, the property is owner occupied, which is the best scenario for financing. It is confusing to some inexperienced lenders since there is income from the same property and that is why some no-doc programs do actually exclude multi-unit properties from their guidelines. However, many programs still allow multi-units as owner occupied purchases. Your purchase price, credit scores and down payment will be driving factors as to what programs are available and best in your situation. Work with a mortgage broker that truly understands the current market. I'm available for any questions.
Web Reference:  http://www.SLarson.com
0 votes
Lisa Cartola…, Agent, Oakland, CA
Mon Oct 15, 2007
The type of loan you will be able to get will also depend on the amount of money you have for a down payment. With excellent credit and documented assests you should be able to find a loan that will fit your needs. As already mentioned if you are buying a duplex and plan on living in one, this will probably be the best option for finding the most favorable loan. Sitting down with a reputable lender who can help evaluate your situation will be your best bet.
Web Reference:  http://www.noschmooze.com
0 votes
Christopher…, Agent, Hemet, CA
Sun Oct 14, 2007
The folks here are right...many alternatives exist if you do have excellent credit and assets. A duplex where you rent 1 and live in the other....A great idea in this market. Especially in the bay area. I would add that whatever you plan on, make certain that your application is truthful. Do not attempt to defraud any lender....in any market....at any time.
0 votes
Infinity Rea…, , Saratoga, CA
Sat Oct 13, 2007
Yes with excellent credit scores and assets, Whether it be an investment loan or a Owner occupied loan you should be able to qualify. Be prepared to document downpayment and assets for reserves seasoned in an account for 2 months. These assets donot always have to be cash, 401k, cd's, mutual funds etc.

Your rates will always be a bit higher and your down payment also a bit more as an investment property. But if you are prepared to live in one of the units a owner occupied loan would be your best bet.
0 votes
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