Need A No Doc Loan In CA for Aprox. 476k

joepan · Joined: 08 Sep 2006 Posts: 3

Hello,

I am new here and a first time home buyer. I do not have the tradtional income to show as I just started a business a few months back that did very very well for me. So here is my situation since I can not really do a stated income becasue of no history or no documented loan becasue I have no income history then I guess my only open is a no doc loan. I have found a place that I like that is about $560,000.00. I have up to 100k for a down if needed. What I am looing for is the lowest price possible per month, lowest or no closing cost, and no PMI. I called one lender who suggested this loan to me. An 84k down ARM Mortgage that would be fixed for 5 years. He said I would have an option each month of 4 payments. Lowest being $1500.00 per month highest $3600.00 per montn or high whatever I want. Basically If I pay anything less then $3500.00 I am not pay anything on the intrest + princple. So the good thing is in my business if I have slow month I can make a low payment but in good months I can make higher ones. He said there was no prepayment penalties or no closing cost as well.

I am very new at this and would like some advice and potentially someone to contact me that can assist me in getting the best loan possible for my situation.

Thanks!

m2c · Joined: 03 Aug 2005 Posts: 937

Some of your terminology isn’t meshing. Specifically “fixed” for 5 years and four payment options each month.

Given the brief outline of your situation (enough income over the year to carry debt service but monthly fluctuations) a 5-1 IO ARM might be the best approach if you could find one on a stated basis.

What I fear is being pitched is the latest variation on the option ARM – payment is fixed for 5 years; interest rate is not. This can really come back to string you via negative amortization. Clarify with your broker exactly how the proposed loan works. Have him/her run a payment amortization given some rate (index) assumptions you come up with.

m2c · Joined: 03 Aug 2005 Posts: 937

Ops, forgot you were new to this. With a 5-1 IO ARM, the interest rate for the first 5 years is fixed and the payment is reduced on the following month when you make a curtailment (pay more than the interest payment due).

joepan · Joined: 08 Sep 2006 Posts: 3

I would really like to go over my situation with someone that will not give me the runaorund and hassels. Can you refeer me to someone who is a lender who does no doc loans that we can go over in detail my situation? There are amillion people, companies out there and would like someone that can speak to that is reputable.

Thanks.

m2c · Joined: 03 Aug 2005 Posts: 937

Don’t know anyone in CA for referral but hopefully some other participant might.

You do a number of risk factors == “just started the business” and fluctuations (wide?) in monthly income. This is going to narrow your choices. On the other hand you have nearly 20% down.

You might have to the “Beaujolais” option ARM but make sure you understand what can happen to you. It’s being pitched as the second coming but I think there is a smoke and mirror game going on.

joepan · Joined: 08 Sep 2006 Posts: 3

Thank you for your insight very much. Hope naohter member can point me in the riht direction to someone.

Thanks

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

The only thing we have available on the no doc side would be simply the no doc loan. It would have a big higher pricing than a standard loan, and to be honest I don't even know if we have the interest only option available.

You could give a call to a local Wells office and ask someone what they have available locally.

m2c · Joined: 03 Aug 2005 Posts: 937

Hop over to Hap’s post on “Loan Talk”. I’m sure this is what you’re being pitched except that it’s in the “new” format.

It’s not that Option ARMs are bad de facto but I’ve yet to come across a situation where is makes sense or where the potential borrower understands how the loan works. On the other hand I’ve refinanced a number of unhappy customers out of this type of loan. Problem is that prepayment penalties are HEAVY. All of these borrowers would not take my advice to suck in their gut, admit they did something stupid, and live with their grief rather than pay the cost to “go free”.

It might be that an option ARM is “right” for you. Just make sure you thoroughly understand the loan.

Another thought. Your situation might be one of the few that a bank can handle more efficiently with a portfolio loan -- especially if you carry good-size transactional checking account balances on your business.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

http://biz.yahoo.com/weekend/mortgagepain_1.html

holious · Joined: 18 Jul 2006 Posts: 16

Hi, im a loan officer in CA, i would need more information from you then maybe i can help you out. No Doc loans are typically higher interest rate, might get a way with lite doc, good thing is that you have asset. If you haven't found anyone yet give me a call i will leave you my # via pm.
:wink:

TFF · Joined: 22 Aug 2006 Posts: 26

There are 5 year fixed option Arms for those who are unaware.

I also am a wholesale broker in So. Cal, any questions or concerns can be adressed via pm :wink:

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Care to explain the 5 year fixed option arm? I think that was addressed in the link above.

As in, what is fixed? I just reread this thread, and as m2c brought up, there seems to be some 'confusion' over what is fixed, the payment or the rate.

david1234 · Joined: 24 Oct 2006 Posts: 1

I would go to quicken loans they have the new option arm but it is fixed for 5yrs and u do have the different paying options, it is called the secure advantage.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Heh.

I had someone try and get one of those loans. They were told they had it all wrapped up. They ended up coming back and working with me when they found out it was countrywide that was offering the loan.

By the way, did you just randomly pick that up or did you actually *read* the post here?

chow · Posted: Tue Oct 24, 2006 8:13 pm Post subject:

oh yeah, just what everyone wants! (quicken loans)

First time homebuyer, who has a no doc, and a new companyset up paying him-And then they go to a cube jockey in a boiler room setting for a loan.

Yeah, that makes a world of sense considering what the original poster asked for-advice!

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