Mortgage Help for Self-Employed

[Christina A.]

Hi members and mortgage pros

I've been self employed for a year. Can prove consistent income around $8k/ month. Credit is 800. 

I'm sitting on 500K cash from a recent property sale and have 1.5M in investments. Last, I own a vacation rental that's been cash-flowing 30K/ yr for the past 2.5 yrs. 

Looking to by my primary residence in West Palm Beach, FL.  Spend approx $500K. 

So far I've received rates of 7-8% on a 30-year fixed with 20% down. Having a hard time swallowing this. 

Prices just keep going up down here. It's nuts. Can anyone offer a better rate? Or any more creative financing suggestions? 

Thanks in advance!

[Paul Defngin]

@Christina A. Unfortunately, that is the current market.  Rates have progressively gotten worst since June 15th and with the Fed's confusing stance on pausing raising rates in June BUT, "oh wait, we likely will raise rates again 2 times in the future"; it certainly does not help. Pretty much every lender that sells on the secondary market are in the same boat here. Now, you may find one or two lenders who sell on the secondary maket who may be about 0.25% - 0.375% apart in interest rates but this is where the market is currently.  

You could look into a Credit Union who's portfolio loans may be a little better but know that any credit union that is still offering lower rates today is in all likely hood did a terrible job lending out their money the last few years.  Hence, why they are now able to lend at those lower rates because they have excess money but that begs the question, how long can they sustain going that path when they are paying out more interests on savings, CD's, Money Market, etc. than what they are lending out. 

Discount points is also becoming more a norm for a lot of borrowers to try and reduce the interest rates. 

Again aside from credit unions or private money lenders, most lenders are going to be right around what you've received, thus far. 

Good luck and let us know if you have any questions.