Quote:
Originally posted by TeraBabes
Wow, if I didn't know better, I'd say you know what you are talking about. Could it be? Could DrewCole (sic) actually NOT be a complete moron?
Just kidding. Actually, everything Drew said is correct, but I have 2 additions to make:
1. You can get around mortgage insurance with creative financing. You can get a primary loan for 80% of the cost of the home, a second loan (shorter term, higher interest rate) for 15%, and then only put down 5%. Yes, you are paying a higher rate on the second loan, but if you figure out how much you are saving on the mortgage insurance, your monthly payment will likely be very close AND you will actually be putting money towards your house. It's a pretty sweet loophole.
2. When they look at your last 2 years of tax returns, they are really only looking at the money earned from your current job. ie, if you had a day job AND did self-employment stuff and then you quit your day job and went full time self-employed recently, all the money you used to make from your day job will be ignored. They will want a current P&L statement too.... Not a big deal if you are making nice bank from your delf employment, but still something to be aware of.
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DrewKole is a mortgage banker during the day. =)
And yes, You can get a 2nd lien for 10-15% and avoid mortgage insurance, at the price of having a higher rate on the 2nd, and it matures generally in 10 to 15 years as opposed to 30 years like the first note (if you went that way).
We don't care what you do, as long as its legal and reported, we just have no way of knowing 1) What you make per month... having made $3k this month, and $1k the last 5, doesn't look good, we use W-2's or employment verifications (cant with self employed) to average the income over the past 2 years...
BTW, Incase anyone is thinking about it, don't forge any tax returns... =)