8/11/2004 09:36:48 PM|||Travis|||

Loans, ETC.

Here is a post I made over on Lisa Kaz's web boards about a loan. I thought it was cool, and it details my journey trying to get an amazing loan with no income and no assets (in fact, my net worth is negative.)

[quote="erik"]Does anyone know of any banks/brokers that can underwrite a high LTV (90-95) Neg-Am [b]with No or Low Documentation[/b]? (college students +self employed)
[/quote]

I have this same problem that I am working around right now. At first, I went to a broker who promised the world and delievered a rate of around 7%. She said I could write off the interest on my taxes. I then turned to the internet :)
Online lenders are a great thing. I would go to elaons.com, learningtree.com and any other website you can find dealing with mortgages. Type in "Option ARM" at the google prompt. Then fill out their forms with the property info and your name/number. If they ask for a social, I would NOT give it. If you have to put something, make it 12345678 or something like that.
Now sit back and let the lenders call you, and call you they will! Make sure your cell phone has enough minutes (another problem I encountered). Tell them exactly what you want, which is an option ARM at 1.25% with 95% LTV. If they can't get it for you, on to the next one.
A thing about credit- don't let them pull it unless you know they can deliever the goods. And if you do get it pulled, try to get them all to pull it in the same week. And make sure they are lenders that underwrite their own loans. They are better than going to a broker who then goes through a lender. And your credit score will drop, so be careful with who you let pull your report. Some of these lenders are good at getting people to let them pull their credit, its what they do all day long.
Now after you find someone good and let them pull your credit report, they will in most cases come back with a different tune. This is because they are excited with you, and then their boss goes "a NINA at 95% LTV? No way, we want this and that and will only go 80% LTV". And so the negotiation begins.
I found one lady who said she could get a 90% LTV with a 2.25% option, and then came back saying she could only get 85% LTV, needed an accountant to verify my self-employment status, and wanted 5 months of mortgage payments in reserves.
So this is where I am now. My plan is to wait until I get a good faith estimate from her and then take that to other lenders and say "beat this, I want 95% LTV". The good faith estimate lets you shop around, its a sheet with all the details of the offer. Once you have that, let the bidding war for your business begin.
In closing (I feel I should have a conclusion, as this has become an essay) getting a no income, no asset (NINA) Option ARM loan at 95% is going to take some negotiation. Its not impossible nor improbable, its just a challenge. Have fun with it.
-Travis

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