best place for a no income/ no asset HELOC

sd2734 · Joined: 12 Dec 2006 Posts: 8

Hi all,

I am looking to get a 100% LTV HELOC with No Income/No asset verification. My FICO is very good (mid to high 700s) and I have a very low debt to income ratio. The property is free and clear so the HELOC will be in 1st lien position, if it makes any difference. The property is a Single family, owner occupied and has been acquired about six months ago. The biggest obstacle is the no income verification thing.
Any suggestions of what lender might finance me or atleast where to look for a list of potential lenders that might do such a loan. Random searching on the net is difficult since lenders' websites give just some basic information and when I call everyone is trying to get me to apply and after some pressure on my side, some will even admitt that they do not have such a product, but still want me to apply!!!
I got tired of fighting will different loan reps! Please help!
Thanks,

SD

chow · Posted: Tue Dec 12, 2006 10:11 am Post subject:

Some of the best lenders do not deal directly with the consumer, so you will end up dealing with a loan officer. Some people work for the lender's retail side and some work as brokers for the wholesale side.

What state are you located in, about how much is your house worth and how much money for the line do you want?

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

You might be searching for a Unicorn.

100% LTV HELOC, NINA, 6 months seasoning, and I'm figuring you just inherited the property and didn't actually buy it from the way you said "acquired".

I don't doubt you'll find a lender, I just don't think it will be a HELOC. You might check with Novastar. I know they have a NINA or No Doc to 100% with a 720 midscore and I believe they also have 6 months seasoning. I don't know if they run them both together but it's worth a phone call and a couple of questions to find out.

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

How did you acquire the property? Was it a sale that you put money into, or did someone just deed it over to you?

Do you *need* a no income/asset or would a stated income/asset work? What kind of figures are we talking about here?

I only know about our equity dept, as I never did any equities as a broker. However ours will do 700 with stated, but only to the limit of your purchase price, so I assume that others have something similar.

sd2734 · Joined: 12 Dec 2006 Posts: 8

Thanks to Mac. Chow and Haplo for their replies.
O.K he re is some more info:
I purchased th house in 06/2006 for $110K ( a foreclosure in rough shape) and I rehabed the property while investing more than $30K. Initially, the transaction was meant as a house flip, but we decided to move in and live here. Concervatively I estimate the house to fetch $180K if we put it on the market today-- don't have an appraisal, though.
Chow: The house is lovcated in Pennsylvania. Ideally I need 100 % available in the HELOC, but given the lenders guidelines we might settle for 80-90% of the house value in available credit.
Haplo: I would say that I need a No INcome/No asset verification, since I cannot produce Business license nor Business Taxes yet --last year I was still a W-2 employee.
Mac: I'll give Novastar a buzz. Thanks for the tip-- I didn't think of them.

Anyone else that you might know of? I am really getting nervous about this. Initially I thought that it shouldn't be that hard to get this type of a HELOC, but it turns out to be much harder than imagined.

Thanks,

SD

m2c · Joined: 03 Aug 2005 Posts: 937

Might see if you can locate a broker who deals with National City Bank. They'll go 89.9% on a stated. Do not know if they do this product at the retail level. Six month seasoning should work but it's always good to keep the rehab backup if requested.

Quite frankly I tend to shy away from NCB on "standard" HELOCs since they're slightly more pricey than my other sources but for a stated they should fit the bill.

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

When did you start self employed?

sd2734 · Joined: 12 Dec 2006 Posts: 8

Arround 04/2006 -- that is when I quit my old job. No business license, though.

pdxloan.com · Posted: Wed Dec 13, 2006 9:55 am Post subject: May have an alternative

You may consider a 1st position HELOC with Macquarie or CMG, although they don't go to 100%, more in the 80-90 LTV range.

The NINA factor is going to give you a higher hit. There may be some creative ways to get you what you need, if you are open to more out of the box approach.

Otherwise, the advice here is solid; just depends upon how comfortable you are in using a 1st HELOC in its' maximum benefit.

If you acquire a 1st HELOC, make sure it functions as a true flexible mortgage account, so you can pay as little interest as possible and pay off this home mortgage in under 10 years. Mortgage cycling will allow you to use income to offset principal and pay tons less interest.

Hope this helps! Good luck with the hunt,

Ed Bisquera

MONEYFORYOU · Joined: 28 Nov 2006 Posts: 5

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