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My first asset based mortgage
Old 09-25-2018, 03:39 PM   #1
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My first asset based mortgage

So I was a little nervous today waiting to hear back on the mortgage. I've been avoiding getting a bigger home as didn't want to pull money from the market and create a tax situation and kind of gave up hope of getting a loan.

Should have known to ask the real estate agent, they always seem to know someone. She found me someone who privately loans so they don't have to use Freddie/Fannie rules (which exclude my IRAs because I'm younger than 59.5). Yes I'm paying up for it, but I figure take out a 30 year and pay it back in 5-7 depending on how well I manage taxes.

They required $500K left in assets after you pay the required 25% down payment AND have an additional 60 months of debt in reserves. So if I had say a $400K house, $2K/month payments, I'd need $500+ ($100 down) + $120 reserves or $720k. No income/No tax verification, just ID and account statement.

That is a WAY WAY friendlier formula than Freddie or Fannie every used
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Old 09-25-2018, 03:51 PM   #2
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What percentage interest were you able to get on a private 30 year mortgage?
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Old 09-25-2018, 03:51 PM   #3
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How is the interest rate?
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Old 09-25-2018, 03:52 PM   #4
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Originally Posted by Silver View Post
What percentage interest were you able to get on a private 30 year mortgage?
You beat me to it...
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Old 09-25-2018, 03:56 PM   #5
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+1 not sure if I would loan under those terms.... particularly no income.
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Old 09-25-2018, 04:22 PM   #6
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What percentage interest were you able to get on a private 30 year mortgage?
6.125%, which is a full 1 point higher than the 5.125% my credit union is offering for today for a traditional income verified loan. Its very painful given my current mortgage is 2.875% for another 3 years. Loans have really crept up there lately.

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+1 not sure if I would loan under those terms.... particularly no income.
I agree, I think its way too lenient. I'm shocked at how much they are willing to lend me (as they asked if I didn't want more) .. about double what I would lend myself, but then again they are guaranteed 6.125% which is also very hard to find in this market.
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