I am unemployed, have the ability to pay cash, but want to get a mortgage. What are my options?

Asked by Marc Stevens, Austin, TX Tue Feb 25, 2014

I can pay cash for a home but I am unemployed. My FICO score is 819. Even with 20% down, my bank says a mortgage is not possible. What are my options?

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John Broussa…, , Houston, TX
Wed Oct 8, 2014
Only option would be private hard money financing, it would require 30% down. For more details give me a call.

John Broussard
Account Executive
Newbridge Home Loans
713-777-9996 Ext 103
0 votes
peter franks, Home Buyer, Wimauma, FL
Mon Oct 6, 2014
I want to qualify for a mortgage based upon assets. My assets are five times more than the cost of the home. A fiend suggested wells fargo bank. Do different banks have different requirements? please advise.
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Christopher…, Agent, Tarrytown, NY
Mon Mar 3, 2014
You will need to show some sort of income. Cash can be spent overnight, the banks want to see consistent income.

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Don Groff, Agent, Austin, TX
Mon Mar 3, 2014
If you do not have income you cannot get a mortgage. You need to show that you have a stream of income. If not a job, retirement withdraws or social security etc will be needed.

Don Groff | REALTORĀ® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
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Susie Kay, Agent, Dallas, TX
Fri Feb 28, 2014
Talk to a lender or mortgage advisor, they'll be able to shed a light.

Good luck,
Susie Kay, RealtorĀ®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240

Servicing your real estate need is my priority!
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Eric Hegwer, Agent, Austin, TX
Wed Feb 26, 2014
The first thing a lender is going to ask you is "How are you going to make the monthly payments?"
They are going to want to see some kind of verifiable income, unless you pay cash.
Now, paying cash isn't a bad thing, you are just taking liquid assets and transferring them to real estate. Here in Austin, the appreciation rate for most neighborhoods is fantastic. Yes there are tax implications, but depending on how long you plan on holding onto the house, you have different options.
I help investors all the time, and would love to talk to you about your long term goals and how we can leverage Real Estate to meet them.
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Dan Tabit, Agent, Issaquah, WA
Tue Feb 25, 2014
Employment may not be necessary, but a steady source of ongoing income is. If you are an investor with assets and are receiving a steady income from them, you may qualify. If you are self employed and can document an income that supports your expenses, you may have a chance.
The problem with basing a loan on your assets only is that they can disappear quickly. You may decide to buy a yacht, have a wild night at a poker table or be sued by someone who tripped on a crack in your walkway.
My advice is either prove some ongoing income or get a job for a while. These low rates are attractive and I don't blame you for wanting to finance rather than liquidate your funds.
One last thought, if you have a large amount of assets, go around your banks mortgage department and speak to someone in executive banking. There may be another program available to you that conventional lenders wouldn't be aware of.
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Marc Stevens, Renter, Austin, TX
Tue Feb 25, 2014
Thanks everyone for the quick replies. One option that I read about was to pay cash and then immediately take out a home equity loan. Apparently, if I did that right away, I could get a full interest deduction. However, income verification would still be required, even with a large amount of accumulated equity.
0 votes
You will have the same problem qualifying for a cash out refinance that you had with qualifying for a purchase. Unless you have income, you will not be getting a loan. It is really that black and white these days.

Jeff Thomas
Mortgage Banker
Weststar Mortgage
Flag Fri Mar 7, 2014
vivianne dor…, Agent, Austin, TX
Tue Feb 25, 2014
Why do you want a mortgage if you can pay cash? Even with low interest rates, why pay interest? What you can do is buy the house cash and then get a Home Equity Loan, but again, why pay unnecessary interest? Is it because the mortgage is tax deductible? Remember, you can only deduct the percentage of the tax bracket you are in, not the whole amount.

I'd like to be your Realtor when you decide to buy your house, by whatever means. Please contact me to discuss this further.

Vivianne Dordea
0 votes
The reason for a mortgage is that it is pretty easy to earn more than 4% in investments. So, I'd rather put my money to work rather than have it tied up in a mortgage.
Flag Tue Feb 25, 2014
Harold Lear, Home Buyer, San Diego, CA
Tue Feb 25, 2014
I don't think some of these post are paying attention. Your paying cash. All you have to do is show proof of funds and you just purchased a home... We do have a new Loan Program that doesn't ask for income information. Its not a hard money loan. I don't have the information that I can list here. If you want more info contact me at hlear@realtyconnections.net
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, ,
Tue Feb 25, 2014
Unfortunately, employment or a stream of reliable income is a requirement for ALL mortgages.

Income, credit, and down payment are the 3 factors that banks look at in determining if you can get a mortgage and for how much.

Back before the financial crisis, a good credit score and a heartbeat could get you a mortgage. But banks suffered tremendous amounts of losses for doing business this way and as a result those programs dont exist anymore, and probably never will.

There is one exception:
You look fairly young in your photo, but if you are over 62 by some chance and this home is going to be your residence, you might be able to qualify for a reverse mortgage purchase, called a HECM purchase. The down payment required would vary depending on your age - the younger you are the larger down payment required. It doesnt require any payments or income verification. Basically, interest just accrues on the balance, and whenever you die or sell the home you pay the bank the amount due on the loan plus interest.

If you're interested in more details on the HECM, give me a call. Hope this helps!

Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
24901 Northwestern Highway Suite 407
Southfield, MI 48075
Direct (248) 728-0078 | Fax (248) 595-7130 | Cell (313) 622-7383
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