Buying a House w/ No Job

spyu · #1 07-10-2007, 07:55 PM

I make a pretty modest living gambling on the side(About $180k/yr). But, this is the first year I have done it w/o working at a real job. I have been renting the last few years, but am now looking to buy a home. Is it possible to get a mortagage w/o a job? I was also curious as to how others who have done this for many years have handled their taxes. How are you required to report your earnings? Obviously I cannot report nothing because if I ever get audited they'll wonder how the hell I've paid all my bills and for all my belongings.

john voight · #2 07-10-2007, 08:32 PM

I'm guessing you will need to find a private lender who lends to ppl who don't qualify @ banks. Really they will set the rules, and figure out if you are worth the loan. I'm guessing the interest rate will be much higher, so you will wanna pay the loan off fast.

I sure as [censored] would not loan you anything above the money you don't use as part of your BR, mainly b/c poker changes so fast:

Games get tougher, gambling bills get passed, you run cold for 3 months, etc...

So if 180k is your profit,and 250k is your BR (meaning you play like 25-50, I would prolly lend you only 50k (unless I had some way of knowing you would not gamble with a large portion of you BR).

Keep in mind, you need to make consistent payments, you cant just pay 50k here, miss a few months, pay 20k, miss.

I am a noob BTW, my knowledge comes from a few chapters of RE investment books, so take it FWIW.

Also, dont hide anything. Be honest.
BTW how the eff are you so good @ poker?

spyu · #3 07-10-2007, 09:03 PM

Thanks for the advice. I'm gonna have a hard time finding a private lender. I'll probably just have to save up some more. I think my bank might give me a mortgage though due to my rating and history. But who knows.

[ QUOTE ]
BTW how the eff are you so good @ poker?

[/ QUOTE ]
I'll interpret this to mean how I make consistent money.

1. Bankroll management
2. Having no ego/emotional control/patience
3. Game selection.
I strongly believe the above three factors are more important than high level technical/reading skills though of course these are critical as well, but alone will not ensure long term profits.

vilemerchant · #4 07-10-2007, 09:13 PM

Surely if you come up with a large enough deposit it becomes a zero risk proposition for the bank. ie/ The bank's house will always be worth more than your debt.

hlacheen · #5 07-10-2007, 09:46 PM

$180k/year and no reporting it = big mistake. Or am I reading what you are saying wrong?

Ace-Ex · #6 07-11-2007, 12:24 AM

30% rule means if you have a 30% downpayment, anyone will lend you the rest no matter what your situation is. If you have good credit (over 720), you can qualify with a no-doc loan probably.

SossMan · #7 07-11-2007, 12:25 AM

with good credit, you can do a No Doc loan w/ as little as 10% and they don't care about employment, income or assets.

Rates are actually not too bad if you have good credit and 20% down. PM me if you want a quote.

yukoncpa · #8 07-11-2007, 01:29 AM

[ QUOTE ]
30% rule means if you have a 30% downpayment, anyone will lend you the rest no matter what your situation is. If you have good credit (over 720), you can qualify with a no-doc loan probably.

[/ QUOTE ]
About 5 years ago, before the real estate boom, a mortgage broker in California told me this was a 50% rule. Is the 30% rule new, or did he give me incorrect information? I asked him specifically - what if my credit is really bad, how much do I need to put down before no questions are asked?

SossMan · #9 07-11-2007, 01:51 AM

w/ 20% down, I won't even pull your credit. the rates/terms suck, but it can certainly be done.

SossMan · #10 07-11-2007, 01:53 AM

[ QUOTE ]
[ QUOTE ]
30% rule means if you have a 30% downpayment, anyone will lend you the rest no matter what your situation is. If you have good credit (over 720), you can qualify with a no-doc loan probably.

[/ QUOTE ]
About 5 years ago, before the real estate boom, a mortgage broker in California told me this was a 50% rule. Is the 30% rule new, or did he give me incorrect information? I asked him specifically - what if my credit is really bad, how much do I need to put down before no questions are asked?

[/ QUOTE ]

just a few months ago, with a 680 FICO (pretty average), you could get a 80/20 (100% financing) on a No Doc program. No income, no assets, no employment.

Things have tightened up, but they are still out there.