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mdavis
66 Posts |
 Posted - 08/26/2008 : 07:16:16 AM
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Looking for Lenders allowing bank Statement for self employed first time home buyers in florida. Need Highest LTV for 661 mid credit to 701 credit scores. Personal Bank Statements.
This home is Fannie Mae Neighbors Eligible Yes. Is any one doint Fannie Flex 100 or My Community 100 in Florida. If so, What are the doc types allowed for this and highest DTI.
This deal is under contract and needs a lender please contact me
321-848-2004
brevardmortgage@hotmail.com |
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davidfr
2226 Posts |
Posted - 08/26/2008 : 07:21:03 AM
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Matt,
All FNMA, Freddie, or FHA deals will be true full doc (not bank statements) and the highest possible LTV is 97%, unless you can hurry and do FHA with DPA. Bank statements will be far less (probably at least 20% down). |
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mdavis
66 Posts |
Posted - 08/26/2008 : 07:26:26 AM
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I need a true bank statement program then as the borrowers do not show enough after deductions to qualify with tax returns.
Their monthly averaged deposits over 12 months is just over $4000 and they have only $400 in debt obligation currently per month. The purchase amount is $130k. If qualified under the bank statement program the DTI is very low.
Any Lenders that can help, or anyone know who is offering these program types as a lot of my client base are self employed individuals.
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davidfr
2226 Posts |
Posted - 08/26/2008 : 07:28:33 AM
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quote:
Originally posted by mdavis
I need a true bank statement program then as the borrowers do not show enough after deductions to qualify with tax returns.
Their monthly averaged deposits over 12 months is just over $4000 and they have only $400 in debt obligation currently per month. The purchase amount is $130k. If qualified under the bank statement program the DTI is very low.
Any Lenders that can help, or anyone know who is offering these program types as a lot of my client base are self employed individuals.
Bank statement lenders are practically non-existent. There are at most 1 or 2 left, but I do not know of any off hand. Just keep in mind you will need at least 20% down because you cannot get MI on a bank statement deal. |
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mdavis
66 Posts |
Posted - 08/26/2008 : 08:17:18 AM
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| Anyone??? Bank Statement Program for Florida??? |
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mdavis
66 Posts |
Posted - 08/26/2008 : 08:40:35 AM
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I heard Downey could do bank statements, Gateway Mortgage Group, Preferred Capital. Is this true?
Can anyone help with finding the right lender for this loan request? |
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bill35
81 Posts |
Posted - 08/26/2008 : 08:52:58 AM
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| yes plaese i would like for the learn more abot the bank stentment porgram plaese give for the names of this lenders |
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liverichly
6003 Posts |
Posted - 08/26/2008 : 09:09:33 AM
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Matt, it seems like you have 3 lenders right there... have you called them up?
I kind of doubt you'll be finding anyone to do this loan, it's not 2006 anymore bro. Clients actually need to qualify like they did in the "old days". Anything with stated income, bank statement income, etc., you should realize it doesn't have a good chance of closing. |
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mdavis
66 Posts |
Posted - 08/26/2008 : 10:11:23 AM
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Thank you for your comment. I do realize that the program is limited. But I did hear that lenders where still offering these programs and or bringing them back out.
It is tough to deliver products and services to my self employed borrowers when every lender is only funding on government backed loans. Of course with these loans they want to make sure that the borrower is paying taxes, has good to excellent credit, a 5 to 10% downpayment and nothing derogatory reporting on their credit. Essentially the perfect borrower!! Unfortunately with the economy the way that it is not every borrower is a perfect borrower. My current pipeline of 10 clients, only 2 of them have credit scores over 680, for refinances their homes do not have sufficient equity or their current loan is more than what the home is reported to worth on the market, limited or no downpayment, or self employed and not reporting all of their earnings (cash) and or have written as much off as possible just to stay in business.
I even had a client that has a 640 credit score looking to refinance at a 65% LTV full doc cash out refinance for debt consolidation self employed and DU came back AE11. Reasoning Self Employement given as one risk factor, 2 High balance of debt to be paid.
Here is a perfect borrower still being hit by goverment regulated algorithms. I ran it thru LP and wouldn't you know I got an Accept.
I need to know who is doing Bank Statement Programs |
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Bluewaterfl
194 Posts |
Posted - 08/26/2008 : 10:56:14 AM
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| Pref. Capital is doing them in FL. However, they will still execute a 4506t. |
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liverichly
6003 Posts |
Posted - 08/26/2008 : 10:59:07 AM
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Hi Matt,
First, someone who writes off all of their income on their tax returns and then wanting to qualify using their income they made is either: defrauding the IRS/government by lying on their tax returns OR doesn't actually make that money. My guess is that they are defrauding the IRS/government because someone who only "netted" $15k in a year (for example) shouldn't be buying a home. It's not our place to judge borrowers on if they have a lot of write-offs regarding the IRS, but it is the lenders place to decline doing stated income loans. The very reason that stated income loans aren't out there anymore is because of the abuse that loan officers, borrowers, and account executives did to that program. If you read the fine print with most lenders, stated income loans were only supposed to be used for clients who would still qualify for the program by providing W-2's, paycheck stubs, 1040's, etc., but who just choose not to. It wasn't designed for people who write-off a lot of income from their 1040's but wanted to use their gross income to qualify anyways.
Stated income, no ratio, NINA, no doc, and bank statement programs all are in the same category.
Second, self-employment is no longer considered a risk factor for Fannie Mae's DO/DU after version 7.0 was released, if you hadn't gotten an Accept through LP you might've wanted to try and re-run that scenario with a new casefile ID.
Third, people who have no down payment, write off their income, and have sub-par credit scores probably shouldn't be buying a home. It's not that they do not deserve to buy a home, it's that it would be financially irresponsible for them to buy a home given their situation. I used to believe that everyone should have the right and ability to buy a home, regardless of what their situation is, but unfortunately that cultured belief has put the housing market in the situation it is now.
I hope you are able to find the lender with the bank statement income program that you are looking for, but I wouldn't be surprised if it is not out there.. however if it is out there, it certainly will not be getting anywhere close to 100% LTV... in Florida nonetheless. |
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liverichly
6003 Posts |
Posted - 08/26/2008 : 11:02:14 AM
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quote:
Originally posted by Bluewaterfl
Pref. Capital is doing them in FL. However, they will still execute a 4506t.
http://www.prefercapital.com/
12 months bank statement loan, must be business for self with license for 2 years, NO 1099 employees, OWNER OCCUPIED PRINCIPAL RESIDENCE ONLY, 650 middle score, MAX loan $450,000, PURCHASE-RATE AND TERM-CASH OUT! Class AA, A+ Purchase or cash out UP to 85%, Class A 80% max purchase or cash out. |
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liverichly
6003 Posts |
Posted - 08/26/2008 : 11:03:11 AM
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www.newsouthfederal.com/wholesale/
will go up to 85 |
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Bluewaterfl
194 Posts |
Posted - 08/26/2008 : 11:08:45 AM
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| I agree with you Shane and thanks for pasting their guidelines. They will also execute the 4506t; as I said above, so if you're borrower hasn't filed, don't waste your time. |
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mdavis
66 Posts |
Posted - 08/26/2008 : 2:58:17 PM
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Thank you all for your responses.
My main concern is for my self employed borrowers. Whose qualifying income would be sufficient if they had not written off the interest paid on their current mortgages, cars, home office and other deductions. They show the income of $50k per year and end up with $10k for total income.
Bank Statements show that they have deposited $4500 per month over a 12 month period of time.
This is not an over statement of income. People make money in different ways some reported and some not. Some make a lot of cash and never disclose how much cash they have made.
I understand that the industry has been changed by individuals who took advantage of Stated Programs and went out and bought 4 homes because they had good credit but no investment property ownership experience.
I want to help those who should be able to qualify based on the business income reported or self employement income especially for those indivduals that are truckers, CDL drivers, tipped employees, avon sales consultants, mortgage brokers, realtors, and even entertainers or techs for Walt Disney, Universal Studios, Sea World, ect where these big companies contract most of all their work to avoid additional employement tax for these individuals and again to get around paying Uncle Sam.
The big industries do this everyday but the little guy trying to survive and feed his family can not because we all know that if we are making $4500 per month and we pay all of the taxes on this, we have only made $3500 per month and then make our deductions and end up with only $10k to show after write offs or not write anything off and get slammed with taxation on the difference.
We always deal with the gross earnings on W-2'd individuals regardless of the deductions made because we can submit the W-2 and they will finance on W-2's and or tax returns.
Whereas my self employed individuals can only report what the bottom line earnings are regardless that they put 4500 per month in the bank every single month and have a track record of doing so.
W-2 individuals respectively can make $4500 per month but if you look at their deposits in most cases you will see that half is actually deposited into the account.
That is why I am looking for Bank Statement Program Same as conforming or 95% LTV or 100% with the 5% declining market deduction! |
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liverichly
6003 Posts |
Posted - 08/26/2008 : 3:03:59 PM
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I don't think that mortgage interest written off reduces the amount of qualifying income a self-employed applicant has.
As shown above, max LTV lenders are going to on bank statement programs is 85%'ish. What you have is a client who does not qualify at the LTV needed, either he needs to bring in more of a down payment or he needs to find a less expensive property so he can qualify for a better program. |
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sandej31
62 Posts |
Posted - 08/26/2008 : 7:37:18 PM
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We have BK statement program.
85% LTV
650 score
self employed (must have business license)
Contact me for questions and pricing. |
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ADenton
44 Posts |
Posted - 08/26/2008 : 10:01:59 PM
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quote:
Originally posted by mdavis
My current pipeline of 10 clients, only 2 of them have credit scores over 680, for refinances their homes do not have sufficient equity or their current loan is more than what the home is reported to worth on the market, limited or no downpayment, or self employed and not reporting all of their earnings (cash) and or have written as much off as possible just to stay in business.
Not being a d!ck, but that sounds more like a turndown pile than pipeline. |
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slants
4978 Posts |
Posted - 08/26/2008 : 10:58:32 PM
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quote:
Originally posted by mdavis
Thank you all for your responses.
My main concern is for my self employed borrowers. Whose qualifying income would be sufficient if they had not written off the interest paid on their current mortgages, cars, home office and other deductions. They show the income of $50k per year and end up with $10k for total income.
Bank Statements show that they have deposited $4500 per month over a 12 month period of time.
This is not an over statement of income. People make money in different ways some reported and some not. Some make a lot of cash and never disclose how much cash they have made.
I understand that the industry has been changed by individuals who took advantage of Stated Programs and went out and bought 4 homes because they had good credit but no investment property ownership experience.
I want to help those who should be able to qualify based on the business income reported or self employement income especially for those indivduals that are truckers, CDL drivers, tipped employees, avon sales consultants, mortgage brokers, realtors, and even entertainers or techs for Walt Disney, Universal Studios, Sea World, ect where these big companies contract most of all their work to avoid additional employement tax for these individuals and again to get around paying Uncle Sam.
The big industries do this everyday but the little guy trying to survive and feed his family can not because we all know that if we are making $4500 per month and we pay all of the taxes on this, we have only made $3500 per month and then make our deductions and end up with only $10k to show after write offs or not write anything off and get slammed with taxation on the difference.
We always deal with the gross earnings on W-2'd individuals regardless of the deductions made because we can submit the W-2 and they will finance on W-2's and or tax returns.
Whereas my self employed individuals can only report what the bottom line earnings are regardless that they put 4500 per month in the bank every single month and have a track record of doing so.
W-2 individuals respectively can make $4500 per month but if you look at their deposits in most cases you will see that half is actually deposited into the account.
That is why I am looking for Bank Statement Program Same as conforming or 95% LTV or 100% with the 5% declining market deduction!
"This is not an over statement of income. People make money in different ways some reported and some not. Some make a lot of cash and never disclose how much cash they have made."
So it's not an overstatement of income and just a non-declaration of taxable cash income, yet they want to declare it to qualify for a loan? Can't have it both ways, if they want the monies to be acknowledged to qualify for a loan, they needed to have declared it. S/E businesses incur a cost to do business and their gross income is not the equivalent of what a wage earner makes as a salary without business overhead. My S/E flooring guy does about $1 mm a year gross, but after supplies, payroll, vehicles, insurance and other Schedule C deductions, his net profit is a fraction of that since he does not actually make 100% of gross. It's scary that you actually had buyers enter into contract when there is not a loan for them. I hope their loan contingency does not expire before they can cancel their escrow because ADenton is right, these are not people who are eligible to borrow and should have never been advised to do so. |
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propertylender.c
1615 Posts |
Posted - 08/27/2008 : 12:01:34 AM
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quote:
Originally posted by mdavis
Thank you for your comment. I do realize that the program is limited. But I did hear that lenders where still offering these programs and or bringing them back out.
It is tough to deliver products and services to my self employed borrowers when every lender is only funding on government backed loans. Of course with these loans they want to make sure that the borrower is paying taxes, has good to excellent credit, a 5 to 10% downpayment and nothing derogatory reporting on their credit. Essentially the perfect borrower!! Unfortunately with the economy the way that it is not every borrower is a perfect borrower. My current pipeline of 10 clients, only 2 of them have credit scores over 680, for refinances their homes do not have sufficient equity or their current loan is more than what the home is reported to worth on the market, limited or no downpayment, or self employed and not reporting all of their earnings (cash) and or have written as much off as possible just to stay in business.
I even had a client that has a 640 credit score looking to refinance at a 65% LTV full doc cash out refinance for debt consolidation self employed and DU came back AE11. Reasoning Self Employement given as one risk factor, 2 High balance of debt to be paid.
Here is a perfect borrower still being hit by goverment regulated algorithms. I ran it thru LP and wouldn't you know I got an Accept.
I need to know who is doing Bank Statement Programs
The irony is that these programs were intended for people just like your current clients.
Now they will be (are) gone due to the fact that these programs were so abused in the last 7 years.
SAD. |
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mdavis
66 Posts |
Posted - 08/27/2008 : 06:39:28 AM
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I understand thanks to all of the comments posted that I need to have my self employed borrowers make min. $100k per year with their $50k write offs and expenses to qualify at $50k income have only 2 credit cards at min payments of 25 and only one car payment at or below $400 per month in order to qualify for a conforming loan for a purchase of up to $200k at the first time home buyer rate of min. 7.0% with or with out MI if they are going FHA because the payment would be the same with MI on a 6.375% 30 year fixed loan.
In addition to which, if they want to continue pocketing away their cash and not reporting it to the government then they will need to put away min. $40k for a lender to even consider the loan.
I am glad that all of my borrowers have 700 credit scores make over $100k per year and have no back end debt so that they can qualify for all of these great programs FHA and other government backed loans offer. Oh crap wait a minute they make too much money for FHA I guess we will have to go with Fannie but dont forget your 5% down payment. TOo bad the median income for most of Florida is $35k for individuals and $55 for couples most of which own 2 cars and have an average of 4 credit cards and home prices are in the $220's.
Just to clarify the client came to me after signing a contract telling me that they had already been pre approved for the loan with a bank statement program. I needed to know if anyone was still doing this so that I could compete and offer the same product, pricing, down payment ect.
This was not an attempt to go over the conflicts of why what products are available and why others have went away. I know why these things happened but yet these programs should have been modified in an attempt to pad the market from so many foreclosures. If lenders and the like would have been more restrictive on the ones they qualified and brokers would have presented only the truth of what can be proven either thru personal deposits, tax returns ect. in the first place, we would not be in this mess. I.E. Stated Stated, and no doc loans.
The lenders basically cut off the money supply to the housing market, drove prices down just as quickly as they went up, put people in adjustables 2 years ago at 100% when we have seen market declines on homes that sold 2 years ago at $300k and are now only appraised at $195k. If I lost that much equity in a home I would most likely let it go to!!
All of this could have been avoided by providing assistance to those facing forecloseure and providing financing to those buyers that can show a proven track record of making payments where they are currently living or renting, and for them to back that with showing proof of money on hand wether thru reserves, bank statements, W-2 ect.
Lenders essentially cut the supply of money off to the housing market, which everyone knows who lives in florida if a plot of land has been dry for too long and then we fill it up with water and let it flow and flow and flow and then cut it off completely drying it out again, the end result will be a huge sinkhole.
My point is being completely restrictive to what loans and to whom the lenders will lend in this market does not solve the problem. Sometimes you have to put fuel to the fire for the fire to burn itself out. Allowing potential buyers to prove in anyway they can the ablility to repay the loan.
As most solgans go in the broker business why are you paying $1300 a month to rent when you can own your own home. Wait did I tell you that you need a min of $3 to $5 in downpayment for every $100k you intend to borrow. Thank God for the 401k.
I know for a fact that most of the homes that foreclosed in my area where investor owned properties and not Owner Occupied. The ones that were owner occupied that foreclosed on for those that I have spoke with was due to the promise made by brokers that they could refinance in 2 years at a lower fixed rate and have a lower payment.
This is simply not the case as 2 years ago you could get a 2 or 3 year arm at 5.0% with interest only.
A 10 year interest only fixed fannie mae program is pricing right about 7.25% this increase along with insurance and property tax increases equalled foreclosure.
Thank God for loan modification and lenders willing to make adjustments for these clients so they do not loose their home.
Thank God for my commercial investors who have money and lenders their doing 90% LTV Stated with or without seller seconds.
Right now this bank statement client in particular has a better chance purchasing a 4 unit commercial property than a home for themselves. Imagine that!! All I need is the rent Roll!
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