No home, low taxable income, seeking mortgage

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TheGreyingDuke
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Joined: Fri Sep 02, 2011 10:34 am

No home, low taxable income, seeking mortgage

Post by TheGreyingDuke »

We sold our home four years ago and have been renting since. Our income is only dividends and interest and try to keep that low. Small pension (about $700 a month) in addition.

All the calculators I look at say that I do not have enough income to qualify to borrow $500,000 on a $750,000 multi-family house in New York; I could pay all cash for it if I liquidated mutual funds, to inclined to do so (capital gains.) I haven't borrowed any money since my long ago student days, but also have a FICO of 800.

What is the bes way to approach this, I am loath to use brokers as they seem to want to share my information with everyone forever.
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells
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mhc
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Re: No home, low taxable income, seeking mortgage

Post by mhc »

When I used mortgage brokers in the past, I did not have to give any personal information (name, ssn, address) to sit down and talk to them. It was a good way to explore my options. I would recommend talking to a couple and see what they say about your situation.
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dwc13
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Re: No home, low taxable income, seeking mortgage

Post by dwc13 »

Are you a member of a credit union, especially one in/near the area you are considering buying a house? Or is seller financing an option? Some counties/cities/villages/towns have special programs to assist "low" income/elderly home buyers -- check for such programs in areas you are interested in buying.
skyvue
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Joined: Tue May 08, 2012 7:14 am

Re: No home, low taxable income, seeking mortgage

Post by skyvue »

Dave Ramsey would advis you need to find a small community bank or credit union that will do what he calls "manual underwriting". Bascially somebody who will take the time to look at your whole financial situation rather than run your numbers through a formula.

Personally, I would never borrow money if I didn't have to. I would liquidate funds and pay cash if you really want to do this.
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archbish99
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Re: No home, low taxable income, seeking mortgage

Post by archbish99 »

Yep, manual underwriting is your answer. Best bets for that are smaller bank/credit unions, or correspondent lenders. A CL is similar to a broker, in that they work with multiple banks. However, instead of just arranging the loan through another entity, they make the loan themselves then sell it to the other bank's wholesale division. They make their money on the arbitrage between retail and wholesale. Because they're the ones actually extending the credit, they're the ones who approve you rather than the bank they're selling to.
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