All Forum Posts by: Brian Ortiz

 I have two years of tax returns so I believe my rates and terms are pretty typical -- 30 years at 4% - somewhere in that neighborhood -- 

Catherine Coy, looks like this particular lender does require the CPA letter - and they won't budge even though I had a letter drafted by another CPA who audited my returns. I was approved for a mortgage last year without this issue, so a bit puzzling why this roadblock is coming up now. I'm speaking to a couple other lenders now, so hopefully, I will have a good outcome within the next few weeks - I'll let you guys know. 

I've been self-employed for over two years -- yes, I was a bit taken aback when my CPA "declined" to write a letter for me. I hired a second CPA to review my returns and he did draft a letter- the mortgage company came back and said nope, we need to original filer to do this. 

Hi Guys,

I am 72 hours away from closing on a home, and my mortgage company is demanding a "comfort letter" attesting to my self-employment. The CPA who filed my taxes won't touch this and they just rejected another CPA's letter who reviewed my taxes and drafted his own letter. Any solutions to get this thing resolved?

Thanks!
Brian 

I saw a couple of online sources that advocated a graduated payment strategy as an alternative to offering a seller a balloon payment in an owner financed deal. The deal has a constant 5% interest rate, but to entice the seller to sell, we would increase the monthly mortgage payment by 14% a year for years 2-5. The purpose of this would be to shrink the number of months until the loan was paid off and provide a higher average payment to the seller. It's an easy calculation to make if the interest rate is zero, but it seems to get sticky when the interest rate is not zero. Here's the deal specifics:

150,000 loan
30 year amortization
5% interest rate 
No Balloon Payment 
monthly mortgage payments increase 14% per year for years 2-5 and remains at the year 5 level for the remaining payoff duration of the loan.  

So -- how many months until this loan is paid off considering the above numbers?

Also, if there are any other viable alternatives to offering a Balloon Payment I'm all ears -- 

Thanks!