Loan advice needed for a No-Doc, owner-occupied mortgage
I need a loan to finance a property (single family home) that will cost about 80-100K. I can put 20-25% down. This is my first property purchase and I am wondering what kind of loan I should seek.
I do not qualify for a traditional mortgage. I am self-employed but did not make enough to file taxes in 2015, so I can't provide tax returns, W-2s or pay stubs. So I believe I need a "No Income Verification" loan. My credit score is about 700. I do not think that the properties I am looking at would qualify for a traditional mortgage anyway, as they are slight fixers / cabin-style properties.
This would be an owner-occupied, residential purchase for my own use. I might rent it eventually, but it's not a typical fix-n-flip or investment scenario, and I would need more than 12 months to repay the loan.
What are my options? I have read about hard money loans, but most seem to be 12-month loans for commercial investment only, not owner-occupied. Do I need a private lender? A sub-prime loan? I have also looked at sites like prosper, upstart and lending tree, but they all seem to require more income verification than I can provide.
With a pretty good credit score and a need to borrow only about $60-80K, where can I find a no-doc loan to finance this purchase? Should I work with a mortgage broker?
The properties I am looking at are in California and New York.
Thank you for your advice.
Most Popular Reply
@Account Closed
Anne, no matter what the loan type, you are going to have to show income from somewhere. Conventional will require at least 1 yrs returns as a SE borrower (with qualifying income), as you already know, but even without a return, you will need to provide that info through bank statements, asset depletion schedule, CPA produced income statement...something. There are no "No Income Verification" or Subprime loans anymore. There are "Non QM" loans now, but they only allow a way to show income outside of returns. An asset based loan could work, but that is only for rental property, which verifies it's income with a lease. Finally, a private or hard money lender is not going to make a loan for your personal home, especially without a source of income.
May I ask how you intend to pay your mortgage?