Anyone know mortgages?

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Svartorm
8/8/12 11:51:10AM
I'm trying to buy a house closer to my business, and have run into a snag getting a mortgage.

For one, I've only been in business for a year and a half, and according to the bank, I need two years worth of tax returns under my belt.

For two, my first tax return reflects a loss because I wrote off all my starting expenses. In reality, I did make money and continue to do so today, but the bank can't approve a loan because I posted a loss. Being as I'm a restaurant, I deal almost entirely in cash and that leaves a lot of questions for the bank as to where this money is coming from when I wrote it all off.

Anyone know how to get a non-FHA or Fanny Mae mortgage?
george112
8/8/12 12:10:47PM
I would try a credit union.

They are usually more lenient then banks and from my experiences interest is usually lower. Not by much but lower nonetheless
prophecy033
8/8/12 12:18:58PM
I second the Credit Union route. Although I'm not sure if it will be any different, at least you're doing your due diligence. I'm in the middle of getting my house refinanced through my credit union. So much easier than going through a bank
Svartorm
8/8/12 12:34:06PM
I'm not a member of a credit union, but I think conceptually they may be a bit easier for me. Its not the bank thats giving me a hassle, but the government, which is why I need to avoid FHA mortgages.
grappler0000
8/8/12 12:43:38PM

Posted by george112

I would try a credit union.

They are usually more lenient then banks and from my experiences interest is usually lower. Not by much but lower nonetheless



A Credit Union is worth a shot, although I don't necessarily agree that they are more lenient. In fact, I would say the opposite is true. It was the large banks that were giving people loans left and right prior to the mortgage crisis, while it was business as usual for Credit Unions. Much of that leniency has dissipated as a result, but it still exists to an extent. I would say that Credit Unions tend to be more consistent and fair, rather than lenient.
george112
8/8/12 1:03:02PM

Posted by grappler0000


Posted by george112

I would try a credit union.

They are usually more lenient then banks and from my experiences interest is usually lower. Not by much but lower nonetheless



A Credit Union is worth a shot, although I don't necessarily agree that they are more lenient. In fact, I would say the opposite is true. It was the large banks that were giving people loans left and right prior to the mortgage crisis, while it was business as usual for Credit Unions. Much of that leniency has dissipated as a result, but it still exists to an extent. I would say that Credit Unions tend to be more consistent and fair, rather than lenient.



Well said

however the banks were giving loans to people who couldnt pay them back. Credit Unions didn't take a hit because they don't operate the same way a bank does.

The large banks dug their own grave. I can only say from my experience that as long as you can prove you can consistently make your payments they will work with you for whatever you want.

My leniency comment only was tied to how they would work with you to a greater extent then imo a bank
KungFuMaster
8/8/12 1:27:35PM
I don't know if going to a credit union will be any different. After the mortgage crisis most banks, if not all, have been very strict on loan policy.

I don't know what the market is around your area but here in California, I believe (don't quote me on this) the market is still slightly dropping. Another year of waiting may not be a bad idea.
george112
8/8/12 1:36:14PM

Posted by KungFuMaster

I don't know if going to a credit union will be any different. After the mortgage crisis most banks, if not all, have been very strict on loan policy.

I don't know what the market is around your area but here in California, I believe (don't quote me on this) the market is still slightly dropping. Another year of waiting may not be a bad idea.



I say it's worth a shot. Banks are dirty. Always will be imo

credit unions however are different. That's his best shot at this point
BlueSkiesBurn
8/8/12 1:49:55PM

Posted by grappler0000


Posted by george112

I would try a credit union.

They are usually more lenient then banks and from my experiences interest is usually lower. Not by much but lower nonetheless



A Credit Union is worth a shot, although I don't necessarily agree that they are more lenient. In fact, I would say the opposite is true. It was the large banks that were giving people loans left and right prior to the mortgage crisis, while it was business as usual for Credit Unions. Much of that leniency has dissipated as a result, but it still exists to an extent. I would say that Credit Unions tend to be more consistent and fair, rather than lenient.



Admittedly, I have no experience in trying to secure a mortgage. This is due to the fact that I don't want to be in this crappy town any longer than I absolutely have to be here, but I can attest to their leniency.

Like I said, I have no experience with a mortgage, but my credit union has been the best bank I've ever had. A couple of years ago I had a very rough summer where things just kept piling up. I went in the negative on my account and wasn't gonna get another check for 2 months. Now, I only owed them like $60, but I was in the negative for too long.

Unbeknownst to me, the bank closed my account. I found out that they do this if you're in the negative for more than 30 days. What I didn't know, was that my account closed 2 days before I received a check for $5,500. I thought I was completely screwed and would have to have the refund (the $5,500) sent back to the state and then reissued in a hard check format. The whole process would have taken about 2 1/2 weeks. I was fucked and would have been ever more fucked without that money.

However, I spoke with my bank manager who reactivated my account and deposited the check. I was told that once a bank account is closed, that's it. Especially if it closed on you because you owed money. You'd have to pay off the bank first and then open a new account. My credit union's manager went against regulations to help me out and I'lm 1,000% certain that a larger bank would not have done this. I've had a credit union ever since I have lived in Bakersfield & I can't ever see myself using a normal bank again. If given the option.
Svartorm
8/8/12 1:50:08PM
Sounds good. I was very surprised that the bank, whom I use for my business banking and personal banking, didn't care about what was in my business account, only my personal checking. I don't use my personal checking though because I'm a sole proprietor and pay all my bills through the business account.

If credit unions are more reasonable (i.e actually look at my credit history and income, rather than a tax form I fudged a year and a half ago), I don't think I'd have a problem.
BlueSkiesBurn
8/8/12 1:59:24PM

Posted by Svartorm

Sounds good. I was very surprised that the bank, whom I use for my business banking and personal banking, didn't care about what was in my business account, only my personal checking. I don't use my personal checking though because I'm a sole proprietor and pay all my bills through the business account.

If credit unions are more reasonable (i.e actually look at my credit history and income, rather than a tax form I fudged a year and a half ago), I don't think I'd have a problem.



I find that my credit union ALWAYS takes into account my personal situation after I explain it. They still operate like a bank. I mean, if you're a bad customer they will shut down your account and such if you keep them in the dark and don't try to make them aware of your situation. But every time I have gone to them and explained my situation, I've found that they treat me like a person. Not a product.

That I said, I feel it would be prudent of me to also state that I use a Credit Union that only exists in this particular area of California. My experience is my experience. haha
george112
8/8/12 2:17:33PM

Posted by BlueSkiesBurn


Posted by Svartorm

Sounds good. I was very surprised that the bank, whom I use for my business banking and personal banking, didn't care about what was in my business account, only my personal checking. I don't use my personal checking though because I'm a sole proprietor and pay all my bills through the business account.

If credit unions are more reasonable (i.e actually look at my credit history and income, rather than a tax form I fudged a year and a half ago), I don't think I'd have a problem.





I find that my credit union ALWAYS takes into account my personal situation after I explain it. They still operate like a bank[\B]. I mean, if you're a bad customer they will shut down your account and such if you keep them in the dark and don't try to make them aware of your situation. But every time I have gone to them and explained my situation, I've found that they treat me like a person. Not a product.

That I said, I feel it would be prudent of me to also state that I use a Credit Union that only exists in this particular area of California. My experience is my experience. haha

that is a misconception. They offer the same services as a bank but do not in fact operate the same


accounting/economics major

sorry for all the bold
Svartorm
8/8/12 2:37:02PM
Right, I think I just need to have a human listen to me.

Part of the back story: I'm trying to get a $125,000 mortgage to buy a duplex. The duplex has a family living in half that pays $800. It's ten minutes from my business, where as I currently commute an hour each way to work. We spend $350 a month in gas. The combined mortgage, taxes and insurance on this property are $936.

$800 rent + $300 gas money saved = $1,100, or more than enough to cover a mortgage. Even if that family moved out, I could afford to float the place for awhile, and I have an easy way of filling the space as my cafe is right nearby, and I could advertise it freely. The bank doesn't believe I make money because I claimed a loss on my last tax return because I wrote off $24,000 worth of building expenses and lied through my teeth about my income anyways. Common sense says to look at my credit and that I've never bounced a check in my life. FHA regs say I can't possibly make any money because it's not all in the bank at once.
grappler0000
8/8/12 2:38:53PM

Posted by BlueSkiesBurn


Posted by grappler0000


Posted by george112

I would try a credit union.

They are usually more lenient then banks and from my experiences interest is usually lower. Not by much but lower nonetheless



A Credit Union is worth a shot, although I don't necessarily agree that they are more lenient. In fact, I would say the opposite is true. It was the large banks that were giving people loans left and right prior to the mortgage crisis, while it was business as usual for Credit Unions. Much of that leniency has dissipated as a result, but it still exists to an extent. I would say that Credit Unions tend to be more consistent and fair, rather than lenient.



Admittedly, I have no experience in trying to secure a mortgage. This is due to the fact that I don't want to be in this crappy town any longer than I absolutely have to be here, but I can attest to their leniency.

Like I said, I have no experience with a mortgage, but my credit union has been the best bank I've ever had. A couple of years ago I had a very rough summer where things just kept piling up. I went in the negative on my account and wasn't gonna get another check for 2 months. Now, I only owed them like $60, but I was in the negative for too long.

Unbeknownst to me, the bank closed my account. I found out that they do this if you're in the negative for more than 30 days. What I didn't know, was that my account closed 2 days before I received a check for $5,500. I thought I was completely screwed and would have to have the refund (the $5,500) sent back to the state and then reissued in a hard check format. The whole process would have taken about 2 1/2 weeks. I was fucked and would have been ever more fucked without that money.

However, I spoke with my bank manager who reactivated my account and deposited the check. I was told that once a bank account is closed, that's it. Especially if it closed on you because you owed money. You'd have to pay off the bank first and then open a new account. My credit union's manager went against regulations to help me out and I'lm 1,000% certain that a larger bank would not have done this. I've had a credit union ever since I have lived in Bakersfield & I can't ever see myself using a normal bank again. If given the option.



Credit Unions are more likely to treat you like a human being. That is not the same as leniency. Leniency doesn't require humanitarian reasoning. The numbers speak for themselves.
BlueSkiesBurn
8/8/12 3:00:33PM

Posted by george112

that is a misconception. They offer the same services as a bank but do not in fact operate the same


accounting/economics major

sorry for all the bold



I'm not talking about actual operations. I'm talking about de-personalized service. They are a financial institution. If you don't tell them what's going on when you're in trouble, they won't assume you need special help. They will shut your shit down and turn you in to a collection agency. That's what I meant by the still "operate" like a bank.

I really meant that, like a bank, if you owe them money, they will come after you. But, with a credit union, they're more receptive to individual problems.

I realize that this isn't the only difference and the entire structures of banks vs. credit unions are much different, but that's not what I was talking about back there.
BlueSkiesBurn
8/8/12 3:03:53PM

Posted by grappler0000

Credit Unions are more likely to treat you like a human being. That is not the same as leniency. Leniency doesn't require humanitarian reasoning. The numbers speak for themselves.



I realize that they aren't the same, but I provided a situation where leniancy was shown by a Credit Union. When it comes to federal banking regulations, the law is the law. My credit union chose to "look the other way" instead of strictly enforcing a regulation that they have every right to enforce. They could have "punished" me and made me open a new account after I received a hard check. Instead, they re-opened my old account, against regulations, and approved my wire-transfer of $5,500.

Choosing not to deal with someone by the letter of the law and instead choosing to hear their personal situation before making a "ruling" is the very definition of leniancy, dude.
BlueSkiesBurn
8/8/12 3:08:51PM

Posted by Svartorm

Right, I think I just need to have a human listen to me.

Part of the back story: I'm trying to get a $125,000 mortgage to buy a duplex. The duplex has a family living in half that pays $800. It's ten minutes from my business, where as I currently commute an hour each way to work. We spend $350 a month in gas. The combined mortgage, taxes and insurance on this property are $936.

$800 rent + $300 gas money saved = $1,100, or more than enough to cover a mortgage. Even if that family moved out, I could afford to float the place for awhile, and I have an easy way of filling the space as my cafe is right nearby, and I could advertise it freely. The bank doesn't believe I make money because I claimed a loss on my last tax return because I wrote off $24,000 worth of building expenses and lied through my teeth about my income anyways. Common sense says to look at my credit and that I've never bounced a check in my life. FHA regs say I can't possibly make any money because it's not all in the bank at once.



This is where having an actual human listening to your story would benefit you. Again, I am not a home-owner and I have never even looked into owning a home. So, I can only speak to the fact that my credit union has treated me better than any other financial institution I've had.

I'd really look into every option though. This is a major purchase we're talking about here. I'd honestly speak to someone with a large amount of experience in these matters. A professional if you can. I'm sure there are a lot of financially sound people here on the PG, but that's no replacement for a face-to-face with someone who has years of experience in these matters.
grappler0000
8/8/12 3:17:00PM

Posted by BlueSkiesBurn


Posted by grappler0000

Credit Unions are more likely to treat you like a human being. That is not the same as leniency. Leniency doesn't require humanitarian reasoning. The numbers speak for themselves.



I realize that they aren't the same, but I provided a situation where leniancy was shown by a Credit Union. When it comes to federal banking regulations, the law is the law. My credit union chose to "look the other way" instead of strictly enforcing a regulation that they have every right to enforce. They could have "punished" me and made me open a new account after I received a hard check. Instead, they re-opened my old account, against regulations, and approved my wire-transfer of $5,500.

Choosing not to deal with someone by the letter of the law and instead choosing to hear their personal situation before making a "ruling" is the very definition of leniancy, dude.



Actually, that's the definition of humanitarianism. There's a distinct difference.
george112
8/8/12 3:21:46PM

Posted by BlueSkiesBurn


Posted by george112

that is a misconception. They offer the same services as a bank but do not in fact operate the same


accounting/economics major

sorry for all the bold



I'm not talking about actual operations. I'm talking about de-personalized service. They are a financial institution. If you don't tell them what's going on when you're in trouble, they won't assume you need special help. They will shut your shit down and turn you in to a collection agency. That's what I meant by the still "operate" like a bank.

I really meant that, like a bank, if you owe them money, they will come after you. But, with a credit union, they're more receptive to individual problems.

I realize that this isn't the only difference and the entire structures of banks vs. credit unions are much different, but that's not what I was talking about back there.



Ah clarification
BlueSkiesBurn
8/8/12 3:58:09PM

Posted by grappler0000


Posted by BlueSkiesBurn


Posted by grappler0000

Credit Unions are more likely to treat you like a human being. That is not the same as leniency. Leniency doesn't require humanitarian reasoning. The numbers speak for themselves.



I realize that they aren't the same, but I provided a situation where leniancy was shown by a Credit Union. When it comes to federal banking regulations, the law is the law. My credit union chose to "look the other way" instead of strictly enforcing a regulation that they have every right to enforce. They could have "punished" me and made me open a new account after I received a hard check. Instead, they re-opened my old account, against regulations, and approved my wire-transfer of $5,500.

Choosing not to deal with someone by the letter of the law and instead choosing to hear their personal situation before making a "ruling" is the very definition of leniancy, dude.



Actually, that's the definition of humanitarianism. There's a distinct difference.






We aren't doing this again. To me, it seems like leniancy. It's like a judge taking into account your situation before sentencing. Seems leniant. My bad, that's just how I see it.
Shawn91111
8/8/12 4:11:44PM
I've been dealing with Credit Unions for most of my adult life and comparing that to how my wife's bank treated her, I can attest that Credit Unions are "easier" to deal with.
grappler0000
8/8/12 4:17:41PM

Posted by BlueSkiesBurn


Posted by grappler0000


Posted by BlueSkiesBurn


Posted by grappler0000

Credit Unions are more likely to treat you like a human being. That is not the same as leniency. Leniency doesn't require humanitarian reasoning. The numbers speak for themselves.



I realize that they aren't the same, but I provided a situation where leniancy was shown by a Credit Union. When it comes to federal banking regulations, the law is the law. My credit union chose to "look the other way" instead of strictly enforcing a regulation that they have every right to enforce. They could have "punished" me and made me open a new account after I received a hard check. Instead, they re-opened my old account, against regulations, and approved my wire-transfer of $5,500.

Choosing not to deal with someone by the letter of the law and instead choosing to hear their personal situation before making a "ruling" is the very definition of leniancy, dude.



Actually, that's the definition of humanitarianism. There's a distinct difference.






We aren't doing this again. To me, it seems like leniancy. It's like a judge taking into account your situation before sentencing. Seems leniant. My bad, that's just how I see it.





How can you go from "very definition of" to "seems like"? That's quite the leap.


You could very well say that the judge was lenient. There is nothing wrong with that. More human doesn't necessarily mean more lenient though. Remember about 8 years ago when banks were looking for any reason to give out loans? They were far more lenient than Credit Unions, even though CU's were more humanitarian.
george112
8/8/12 4:23:10PM
so does leniency mean the same thing as giving??

I thought it meant lax in rules. or someone not being so hard on someone else

I'm confused now

basically a synonym for merciful

So the banks were being more merciful?
Svartorm
8/14/12 11:11:30AM
Thank you Mr. Spam Bot.
Chael_Sonnen
8/14/12 11:48:39AM
Did I hear the word Mortgages?

I know a few Knock-around guys that can help you out

PM me if you are interested.
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