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Can we get a No-Doc or Stated mortgage?


BestOfMe
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My fiance's mid-score is about 640. His only derog is an installment loan that was 120 days late at one point, but is now current and has been current for over a year. His only other debt is a student loan that is in deferrment. He has a credit card that has about $200 balance right now and has never been late. He has only held his current job for 4 months. He was employed by his previous company for 5 years and there was no unemployment, went from one job right to the next.

My mid-score is 570 and am self-employed.

Fiance's income is too low to get the conventional mortgage we need by himself. My scores are low, and being self-employed I have had to deduct a lot of expenses from my taxes, making it appear that I'm not making as much money as I really am.

Can fiance qualify for a no-doc or something similar, without me?

He has about $8000 in various assets (401k, stock, savings) in his name. We'd really like to get 100% financing. We're looking for a mortgage of about $125,000, maybe a little less.

Does anyone know if he would qualify for this? Thanks!

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Never mind. Here is something I found online about Stated Income Loans:

Some general guidelines for a Stated Income Mortgage Loan.

Minimum middle credit score is 640

5 credit accounts are required. 3 may be from alternative sources-utility, auto insurance, etc.

Bankruptcy and foreclosures must be discharged for 3 years with reestablished credit

Two years employment with same employer

Two months PITI reserves are required with an LTV <=80%. 6 months reserves are required otherwise.

5% minimum down payment is required from your own funds. No gifts.

***********'

Given these requirements, I'm not sure we can do it. He's got a new job (4 months) and we can't do a 5% down payment without depleting our reserves.

Oh well. Back to the drawing board!

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The requirements differ based on the lenders program.

My credit score is in the 700's and my broker had a stated income/asset program that gave the same rate as full doc fixed based on my score. I went with it as I didn't want to go thru the trouble of digging up all the documentation.

When I questioned him about the requirements, I was told that his lender, which happened to be Countrywide, only required a score of 730 to qualify, 3 open credit accounts but no reserve.

Before I went with him, I was calling around about different programs and some wanted 7 months of reserve. So it helps to shop around.

Keep looking for what you need and you will find it.

Good Luck!!

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One thing to consider is this. You can get a loan based on his score, as long as he makes 52% of the household income or more. Since you are self employed, and deduct your expenses, start spending more money developing your business and you may be making less than he does.

I think that you can probably get a 100% loan.

Charles

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