OfflineI had heard if you take out a mortgage loan that is half the value of the house, then you don't qualify for the loan, the house does. Is this true?????
Here is why. I am looking into a house and the county has it appraised for $95,100 however when I spoke to the owner she said since the house is in BAD SHAPE she would take $35,000 for it.
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No doc loans usually meant that a person could get a loan without income verification. The income stated would balance out the DTI (debt-to-loan ratio). Meaning all outstanding debt and new mortgage would be covered and accounted for.
Everything was pretty much verbal.
In most cases their fico score was pretty good. It will be hard to get one now, unless you have a score over 750 or better...depending on the lender. Most loans are now full documentation. They check income, assets (i.e. bank account, 401k's) job history, if you own other propertyies, w2's, paystubs...etc. To get a no doc loan now, you would need to be pretty strong in the fico and assets area.
See what others have to say. This group is pretty good and willing to help!
Hope this helps!
Geri
I forgot to say that the person getting the loan must still qualify. You must show the ability to repay. It's not the house, it's the individual. I could be wrong!
Geri
friend had heard something about it just checking to see if it was true. Thanks
With the what you descrided with the property a lender will loan on either the appraised value or the offer price whichever is lower so just because you are getting a great deal on the property the mortgage will be based the loan on the offer price. No doc loans are pretty much a thing of the past, and for investment property you wont't find no doc loans.
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That's true. Investment property "No Doc" has gone by the way side. Hence the mess that we are currently in with the cocktail loans of yesteryear....
No Doc Loans are pretty much a thing of the past, with the market being the way it is and the mortgage meltdown, i dont think theirs 1 lender out there willing to do a No Doc Loan, even if your a 750 fico, lending requirements are much tighter than they were a couple of years ago(when this type of loan was popular)
YOUR HERO, SULLY
Ok guys thank you for the info, well I guess I need to find a local investor then.
Just to give you a LITTLE hope, I've been speaking with my mortgage broker this week. She said that if my score is 720 or better when she runs it, then I can go stated income (no docs). They are only giving 80% investor loans, though (ONE particular lender she said MAY do 85%) which SUX! I would love 90% right about now!!!!
Emily
ECC Investments, LLC