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As a sole proprietor, the lender is going to look at the income that you claim. There are few items from the schedule C that can be added back into the income such as depreciation. If you write off a significant amount of money, you may need to look at alternative programs. The rates will be higher, but the income is what it is. You may need to look
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There are couple of different options. The first would have you turn the equity into cash through either a refinance or a home equity loan. You can then use these funds for the down payment on the new property. The other option is called a cross-collateral loan . This is going to be more difficult to qualify for as most lenders will need to have their
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To reduce the risk of each individual mortgage, lenders package mortgages together and sell them on Wall Street . For example, a lender may sell a package of ten mortgages to Wall Street investors. The investors will benefit by collecting the mortgage interest. Of those ten, two may be subprime or of a higher risk level. Due to the fact that there are
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All banks look at a borrower's income compared to their debt. This is called the debt to income ratio. For example, conventional mortgage guidelines call for a housing ratio of 36% and a total debt ratio of 43%. Example: Gross Monthly Income: $5,000 36% Housing Ratio: $1,800 43% Total Debt Ratio: $2,150 This would mean that on a conventional mortgage
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There are several ways to do 100% financing. You can do a single loan to 100%. The problem with this is that you have to pay private mortgage insurance (PMI) if the mortgage exceeds 80% of the value or purchase price. Mortgage insurance can be expensive. This year, Congress passed a law making mortgage insurance tax deductible for loans closed this
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Congress passed a law this year that makes Private Mortgage Insurance (PMI) tax deductible for loans that are closed with PMI this year. Congress will need to renew the law for the tax deduction to continue. If you have private mortgage insurance on a loan that closed before 2007, it is not tax deductible. Again, the tax deduction is only for loans
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There are programs that allow for less than full documentation. Most of these programs require equity or a down payment. Please be aware that mortgage guidelines are tightening as the default rates on these types of loans has risen significantly over the last few years. Full Documentation - Document employment, income and assets Stated Income - Document
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You cannot refinance or get a home equity loan on a house that is currently for sale. The property will need to come off the market for the financing to be done. Due to the condition of the current housing market, many lenders are changing their requirements. Many lenders had a requirement on refinances that a house could not have been listed for sale
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The list price is the price that a seller is looking to receive for a property. This is the asking price for a house on the market. The sales price is the price that is accepted between the buyer and the seller. The appraised value is a independent opinion of value. The appraiser is the eyes of the bank. They have no financial gain in the sale of the
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If you have been turned down for a loan, the best thing to do is to ask why. You may not have fit the guidelines with the lender that you were looking to use. Your lender should give you a statement of denial which should detail exactly why you were turned down. If this is a purchase, with the denial letter, you should be able to get out of your contract