Guest Jane Report post Posted July 8, 2004 Hi. I am in need of some help. My husband and I want to start investing in RE. (No we will start investing!) I need one more semester to finish my finance degree (so right now I'm in school & don't contribute much financially). Ok He is self employed. We are buying our house (being built). In three years we plan on renting it out. We live in San Antonio,TX. The mortgage co has us over a barrel with the stated income form. Will this be a problem in the future to try and finance other rental homes? Until the house is finished, we can't have anything new on our credit report. So we are looking at owner financed homes. Any suggestions? Right now we have being doing alot of reading, analyzing, writing out our plan. Any help in direction will be appreciated. ThanksJane Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted July 9, 2004 Hi Jane, I'm not familiar with TX lending laws and rules but from what I see and what I know, stated income should not be a problem if it is feasible. If your husband stated that he makes $4,500/month PT with McDonalds as a food server, the underwritters will toss that one out. However, if he is a self employed contractor and states that he builds homes and his average monthly income is $6,000, this might make more sense to the lender. There really shouldnt be any issues with obtaining investment properties using stated income. I am personally going for a 21 unit apt complex using stated income, stated assets and no source or seasoning of the downpayment. Many lenders for residential properties i.e. single family to four plex are much more flexible and it allows for more 'creativity' than the commercial side. The best thing is to question your loan officer/mortgage broker and keep asking them to come up with a solution for what you want and need. If they hem and haw, find another mortgage broker. Keep looking, there are creative loan officers out there, it's just a matter of finding with them and working with them. Dont pay any upfront fees, question everything and get a good faith estimate from them before you proceed with the loan process. Have them calculate your monthly payments with taxes and insurance. There are also NINA (No Income, NO Asset) loans out there. You'll need at least a 680+ FICO credit score but the loan application is only name, address, daytime phone, SS# and a credit report. Those are easy but the interest rates are in the 8% on an 80% LTV loan and 12% on a 15% LTV second. Expensive for sure but if you work the numbers and massage everything, you can still get financing at those rates and get some cashflow, then down the road you can refinance into better rate and terms. That is what I'm in the process of doing now myself. Welcome to this board and feel free to post questions here. It is also good to review the previous posts on this board where others and myself have lots of good info posted. Best wishes and good luck, Andrew Ikeda (Mortgage Consultant/Investor) email: andikeda@netscape.net Share this post Link to post Share on other sites
lacashman 0 Report post Posted July 10, 2004 Andrew posted some good info about income and stated income programs so read that. Don't worry about doing a stated income progam now. When your ready to refi they will want look at what you do then. Now in Texas refi and LTV limits are diferent. If your pulling cash out you will have a very hard time going over 80% LTV. Share this post Link to post Share on other sites
