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Search By Borrower Can Still Turn Up A 'low Doc' Mortgage

Low doc loans

That's because the standard mortgage documentation process imposes such extensive paperwork demands on the self-employed and those who work on a contractual basis or for commissions. "It's a real hassle for the self-employed to get a mortgage," Mr. Miller points out. Suppose you're a young attorney in practice for yourself. You happen upon a little stone cottage on a hillside and decide to take out a standard mortgage to buy the place. To your horror, you'll soon realize that proving your capability for the mortgage is no mere credit application but the equivalent of a formal financial audit. "It's almost like being guilty and trying to prove yourself innocent," Mr. Gumbinger says of the usual documentation required of a self-employed person. <br>For the original version including any supplementary images or video, visit

No-doc, Low-doc Loans May Help People Who Lack Steady Job, Income

If they are self-employed, they might have to prepare year-to-date statements that include accounts receivable. They might also need to show bank balances, brokerage reports, a list of assets and so on. Some lenders will do a "stated-income loan. The borrowers just state how much they make and the lender accepts it," he says. All the other paperwork has to be in order, however. The borrower's credit history has to show that he or she is a good risk. <br>For the original version including any supplementary images or video, visit

KATE THOMPSON: How many genuine one-day self-employed people do you have? In eight years of finance broking, I only ever met one real person. STEPHEN LONG: On the Pacific Highway just south of Newcastle in New South Wales is the home of Michelle Matheson, a single mother of three. A few years ago, juggling bills, she contacted a local business that said it could help people manage their money. The advisor who saw her was in fact a mortgage broker. MICHELLE MATHESON: He then took me down the path of purchasing a home. And unfortunately I guess the journey along the way visit has been quite, um, abhorrent, to be quite honest. STEPHEN LONG: What was your income at the time? MICHELLE MATHESON: As a sole parent, at the time, and working part-time, probably around about the $24,000 mark. You know, give or take $60 or $70 possibly, like in terms of the actual, yeah, accurate income. STEPHEN LONG: So you were a sole parent, three kids, $24,000 a year and you were told you could buy a home? <br>For the original version including any supplementary images or video, visit

Insurance salesman touting 'low-doc' commercial loans

"His mortgage will be the same as what he was paying in rent, but in 15 years he'll have an asset worth $650,000." Insurance salesman touting 'low-doc' commercial loans September 11, 2006 4:20 AM Joseph Bailey is convinced that loaning money against commercial real estate is the best business opportunity going right now.The career insurance salesman went to a seminar held by Austin, Texas-based Great America Funding this summer, and returned to Sarasota with the conviction that he needs to devote all his time to help businesses get the money they need without having to deal with bank bureaucracies."We can make a loan for any commercial reason that makes sense," said Bailey, who has run his own insurance agency in Sarasota since 1974. "Forget about three years of tax returns and groveling for financial statements. If you have equity in a building, that's all we need."Bailey says Great America Funding was founded two years ago by R.C. McVaney. It has been growing at lightning speed and already operates in 50 states.But no major newspapers have written anything about the company yet, and if you type Great America Funding or McVaney's name into into Google or Yahoo! search engines, nothing comes up except for the company's own Web site: America Funding says its goal is to provide businesses and commercial property owners with loans under favorable rates and terms that will actually do them good."Our loans can be for business acquisitions, expansions, property purchases or refinances, equipment leasing, factoring or virtually any business purpose," the Web site states. "We have some loan programs that require NO income documentation or verification."Bailey agreed that the drawback of no document loans is that interest rates attached to them can be much higher than traditional bank loans."I don't want you to think that we're bottom-feeders, that we will take anything that banks throw in the wastebasket," Bailey said. "People still have to qualify. But because we're not a bank, we can move more quickly and we can serve property owners who are underserved by traditional lenders."Bailey said he is in a unique position to build loan volume because he already has a stable of business clients from his career as an insurance agent.One of those clients -- an Arcadia-based orthopedic surgeon -- is working with Bailey on two separate financing deals.The first deal is a factoring agreement in which Great America will buy the surgeon's receivables for $200,000 and collect on them for a fee."This doctor who repairs people who have been in auto accidents, is also trying to do another loan with us," Bailey said. <br>For the original version including any supplementary images or video, visit

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