How can I get a mortgage loan without a current income?

[Sara Robin]

Hello! I currently have $150K equity in my current home and $300K cash on hand. I am looking to sell my current home and buy a new primary residence($500K value) but dont have a monthly income. I recently cashed out of a startup and working on a new venture. I can easily put 30-40% down.

Whats your advice in this situation. A mortgage lender told me to use a DSCR loan and just move in to the property as a primary residence?! I dont want to deal with legal issues down the road. Are there other ways to obtain a mortgage loan without a current income with a good amount of cash on hand? Thanks so much for your help in advance

[Bryan Maddex]

Please run from the lender that told you to do a DSCR loan and then move into the house! That is occupancy fraud and that lender should be reported.

There are "no income" loans in the marketplace. 20% down is required and rates are in the 9s. You also need 12-24 months of reserves so need to hold back some of your down payment money possibly depending on other assets that you may have.  I tell a lot of clients "Just because there is a product, doesn't mean you will like it" lol! There are actually 2 companies that do these no income loans. 

Alternatives?  Can you get a no occupying coborrower to sign with you? If you are retirement age, you can do asset based withdraws from "work related funds" (IRAs/401ks...). Bank statement loans likely will not help you until you have been doing your new venture for 12 months and have some deposit history. 

Feel free to message me if you want to go over the no income options. 

[Tarik Turner]

Yikes. The advice people give these days... Please at all costs do not commit mortgage fraud based on the advice of someone who will deny they ever spoke to you about any such thing if all hell breaks loose

[Sara Robin]

thanks for your response and helpful information! really appreciate it