Different Loan Types = Everyone Qualifies!!
If you know the different loan types, you can qualify on any property that is actually a good deal. Let's start with the different types available & what each requires.
Full doc - full 2 years residence history, mortgage history, employment history (including tax returns &/or W2's), 2 recent paystubs or current year profit & loss, 2 consecutive bank statements, usually proof of 6 months piti (principal, interest, taxes, & insurance) in liquid reserves, leases on all properties, and anything else special to your particular deal.
Stated income, stated assets - full 2 years residence history, mortgage history. Usually a letter from your cpa or verbal verification of employment.
No doc - Mortgage & residence history.
The "no doc", if you qualify, may cost a little more in rate, but the odds of it closing are so much higher. The reason? Since you have fewer documents turned in, there are fewer things to go wrong. Such as, if you went in tomorrow and found out you are being laid off - no problem! You don't have a full 6 months piti reserves - no problem! Since you don't provide leases, there is no chance of them being written "wrong" from the lender's perspective.
Other options? Home equity line of credit on your personal residence, hard money loan, or my personal favorite - private money.
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