Pro poker player buying a house...

[SammyKid11]

Hey guys...wondering if anyone here has some expertise on this subject. My girlfriend and I have been renting a place for a little over two years, kept renting longer than we wanted to because of concerns we might move...we've now decided to stay in town long term. We're looking to move in somewhere in September, as our lease is up end of August.

My grandfather is going to co-sign a loan for us...but I'm wondering how much impact it's going to have that she has a low paying job (non-profit work) and I have zero job. I play poker during the days and play music at night -- though, admittedly, my living is about 90% poker right now (trying to change that, but it's just easier making money at poker than at music at the moment). Will loan agents not give a crap since I have a co-signer who's rich with perfect credit and owns two homes? Or will my professions (not like either one of them are "stable" in most people's eyes) cause them to raise an eyebrow at the loan altogether?

If so, is there some creative way I could describe what I do for a living that would be better for purposes of the loan? Home-based business? Private investor (I think of each STT as an investment in my own abilities to play properly)? Would it be better if I claimed that music paid all my expenses?

Anyone with some experience at this, please help! If this is the wrong forum for this, mods, please feel free to move it. I debated about OOT or Zoo and landed on Zoo.

[KittyLiquor]

I've been a mortgage loan officer for the last 15 years.

If I loan you money I want to be assured that you will pay me back. Therefore, show me your income (ie. two years of tax returns.) We figure if you paid taxes on it, it must be real income. I don't care if you are a heart surgeon, poker player or an, umm, exotic dancer. (Yep, done regular mortgages for them.)

Now, if you can't prove you income to me, then it may get a little tricky. If you have at least decent credit and a decent down payment (10-20%) I can do a "No-income" or "Stated Income" loan. The interest rate is a little bit higher (1/4% to 5%) depending on your credit score, down payment and other factors.

On the no income loans, the lenders really want to see some $$$ in the bank. Stock, bonds, retirement accounts, checking & savings accounts, etc. (I mean really, if you're pulling down mega-bucks, you should be able to save some of it.)

PM me if you have specific questions.

--------------kitty

PS. I am only licensed to do business in Arizona, so I won't try and get your business. Just trying to pay the forum back.

[ericicecream]

[ QUOTE ]
I've been a mortgage loan officer for the last 15 years.

If I loan you money I want to be assured that you will pay me back. Therefore, show me your income (ie. two years of tax returns.) We figure if you paid taxes on it, it must be real income. I don't care if you are a heart surgeon, poker player or an, umm, exotic dancer. (Yep, done regular mortgages for them.)

Now, if you can't prove you income to me, then it may get a little tricky. If you have at least decent credit and a decent down payment (10-20%) I can do a "No-income" or "Stated Income" loan. The interest rate is a little bit higher (1/4% to 5%) depending on your credit score, down payment and other factors.

On the no income loans, the lenders really want to see some $$$ in the bank. Stock, bonds, retirement accounts, checking & savings accounts, etc. (I mean really, if you're pulling down mega-bucks, you should be able to save some of it.)

PM me if you have specific questions.

--------------kitty

PS. I am only licensed to do business in Arizona, so I won't try and get your business. Just trying to pay the forum back.

[/ QUOTE ]

Just out of curiosity, if there are no w-2 forms etc, how do you know if the tax return is real? Can someone just keep a dummy return for credit purposes? Is would seem maybe there is a law against this (can you cite the law it breaks), but if you're not actually submitting anything false to the IRS...

[bkholdem]

[ QUOTE ]
[ QUOTE ]
I've been a mortgage loan officer for the last 15 years.

If I loan you money I want to be assured that you will pay me back. Therefore, show me your income (ie. two years of tax returns.) We figure if you paid taxes on it, it must be real income. I don't care if you are a heart surgeon, poker player or an, umm, exotic dancer. (Yep, done regular mortgages for them.)

Now, if you can't prove you income to me, then it may get a little tricky. If you have at least decent credit and a decent down payment (10-20%) I can do a "No-income" or "Stated Income" loan. The interest rate is a little bit higher (1/4% to 5%) depending on your credit score, down payment and other factors.

On the no income loans, the lenders really want to see some $$$ in the bank. Stock, bonds, retirement accounts, checking & savings accounts, etc. (I mean really, if you're pulling down mega-bucks, you should be able to save some of it.)

PM me if you have specific questions.

--------------kitty

PS. I am only licensed to do business in Arizona, so I won't try and get your business. Just trying to pay the forum back.

[/ QUOTE ]

Just out of curiosity, if there are no w-2 forms etc, how do you know if the tax return is real? Can someone just keep a dummy return for credit purposes? Is would seem maybe there is a law against this (can you cite the law it breaks), but if you're not actually submitting anything false to the IRS...

[/ QUOTE ]

If a rich person is co signing and they can meet the credit guidelines for a 3rd house isn't the posters info irrelivant? Don't they just go by grandpa's info?

If Bill Gates cosigns for my house does my specific info matter?

[pdxjayhawk]

[ QUOTE ]
Just out of curiosity, if there are no w-2 forms etc, how do you know if the tax return is real? Can someone just keep a dummy return for credit purposes? Is would seem maybe there is a law against this (can you cite the law it breaks), but if you're not actually submitting anything false to the IRS...

[/ QUOTE ]

You're signing a document, a loan application, that contains assurances from you that everything on the application is true. Submitting a dummy tax return for the purposes of borrowing money is fraud. Most lenders now require mortgage applicants to sign a form 4506, which allows them to compare the applicants tax return against the actual return submitted to the IRS. If the numbers don't match, you've got huge problems.

OP should be fine, as long as he and his lady find a loan program that allows a "non occupant co-borrower". And the earlier post is absolutely right. Even without granddad, OP could get a mortgage using a so-called NoDoc, or no income verification loan.

[AggroFish]

Solution: 12 months bank statements.

[RedBean]

Get a "stated income loan" where you don't have to provide documentation of income. You'll pay a few percentage points more on the rate, but if you can;t document income, it may be your only choice.

Search "stated income loan". I know Quicken offers them.

[Dangergirl]

If you have good credit you can also go with a no doc loan. There are some lenders that do 100% financing on no doc loans, but others also require 5-10%. This is assuming that your fico score is at least 720. This is how I bought my house.

If your grandfather has excellent credit you can also have him finance the house and have your name on the loan as a non purchasing spouse. Depending on the state you live in it might also have to be an income property for him. He can always say it is an income property for the two of you, and you are rentring it to your girlfriend.

[gaming_mouse]

I have a good credit score and am in the process of buying a house. With 10% down, I can now get a 6.75% loan with no origination fee, and minimal negotiable fees. You don't have to show ANY proof of income or ANY assets. If anyone tells you different, find another loan broker.

BTW, it is *ESSENTIAL* that you get bids from at least 2 loan brokers and tell each what the other is offering you, so that you will get decent terms. They are glorified used car salesman, and they make money of a variety of b.s. fees like the "Document Processing Fee." The industry exists on the ignorance of the typical consumer. The first loan broker I talked to ended up taking off over $1500 from his initial bid, which at the time he described as the "lowest I would find anywhere." Get them bidding against each other -- but be nice and professional about it -- and after about 3 or 4 rounds you'll be left with a reasonable price.

HTH,
gm

[gaming_mouse]

[ QUOTE ]
Solution: 12 months bank statements.

[/ QUOTE ]

Completely unnecessary if you have a good credit score.