First time buyers in So Cal, self employed.

mlbubeena · Joined: 08 Dec 2007 Posts: 7

Hello,
I am begining to do some research to prepare to hopefully purchase our first home in the early part of next year. I am a bit new to mortgages, so I really need to be educated.
Here is our situation-
We are self employed and have an approximate net yearly income of 160K.
We can only document about 60K of that .... with bank statements only.

Our monthly debts are approx. $1200 (not including $2200 a month for rent)
My husbands credit score is approx. 700, mine is somewhere in the 640 range.
We will have a maximum of $100k to put down...
We are looking to purchase a single family home in the $500K range in southern california.
Will this be feasible? What type of programs are available for this situation? How much of a monthly payment can we expect?
Thank you very much in advance!

Marty 1stMet · Joined: 20 Sep 2007 Posts: 38 Location: Williamsburg

There are ways to do this. With the 700 Credit score, and 20% down, several of the wholesale lenders I deal with will do you stated/stated on full doc pricing. That being said, the stated income has to be at least reasonable for the employment type. House prices are falling in CA as well, so be sure you have a full appraisal done (some lenders will allow an appraisal waiver, so do not go for this.) Our office is in Irvine, CA and I know quite a bit about the market in the state, so if you have any questions or concerns, feel free to PM or email me. Thanks!

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

Marty 1stMet wrote: There are ways to do this. With the 700 Credit score, and 20% down, several of the wholesale lenders I deal with will do you stated/stated on full doc pricing.

I would keep your loan amount at $417k or less so that you have more options available. If you keep it at $417k or less you can do Stated Income/Stated Assets at very low 6% range all day long.

Marty 1stMet · Joined: 20 Sep 2007 Posts: 38 Location: Williamsburg

jrhartman wrote: Marty 1stMet wrote: There are ways to do this. With the 700 Credit score, and 20% down, several of the wholesale lenders I deal with will do you stated/stated on full doc pricing.

I would keep your loan amount at $417k or less so that you have more options available. If you keep it at $417k or less you can do Stated Income/Stated Assets at very low 6% range all day long.

That's exactly what I said, but in different words, LOL

mlbubeena · Joined: 08 Dec 2007 Posts: 7

What if I did 10 or 15% down? Or what if I had a loan over 417K? Staying in the low 5's is not easy in my area....

Marty 1stMet · Joined: 20 Sep 2007 Posts: 38 Location: Williamsburg

You could split it on a 1st and 2nd, with the 417k in the high 5's to the low 6's, and the 2nd in the mid 7's.

Jason Hall · Joined: 07 May 2008 Posts: 10

This deal can easily be done.

kris · Joined: 22 May 2008 Posts: 4

yeah with 20% down that will be easy. What everyone is skittish about is doing the 0% or 3% down.