Issues with Day Traders qualifying for a Mortgage

NERVESASTEEL · Mar 16, 2009

Quote from cstfx:

Avoid co-ops and look for a condo building. You shouldn't have to perform for these co-op boards just so youcould live there. It will be one less headache for you.

FWI, I personally will NEVER buy in a co-op building.

I can't tell you how many times I've heard that. It just seems like there's more inventory with Co-ops. But duly noted!

Anaconda · Mar 16, 2009

Quote from NERVESASTEEL:

I've been renting in Manhattan forever, but now am seriously considering buying. I have enough capital for a sizable down payment but am worried about Board acceptance and financing because of my occupation.

Does anyone know what issues I should expect to overcome because I'm an independent Trader???

1) If you're a first time home buyer, you can always get a mortgage with minimal requirements. You can get 6.00% even

2) For the prime mortgage, anybody who is self-employed will have problems

3) Why would you want to buy anything in Manhattan right now? It's a losing proposition. You won't even recognize this city in a few years.

Anaconda · Mar 16, 2009

Quote from cstfx:

Avoid co-ops and look for a condo building. You shouldn't have to perform for these co-op boards just so youcould live there. It will be one less headache for you.

FWI, I personally will NEVER buy in a co-op building.

Not all co-op boards are sad, miserable souls on a power trip.

Condos are a rip-off due to maintenance costs. And you will have to deal with similiar rules.

The best decision right now is to lock in a long-term lease at a low price.

cstfx · Mar 16, 2009

Actually it would be better to look at White Plains or Jersey City's Gold coast area. Both offer 25-35% better pricing and an overall higher standard of living. And you are only 1/2 at most outside the city. (In JC, it is quicker to get to lower Manhattan than if you lived on the UWS or UES)

NYC is really over-played.

JORGE · Mar 16, 2009

I just purchased a home in Spokane, WA, October of last year. In addition to 20% down, I had to produce two years of tax returns, accountant verified brokerage P/L statments through October of 08, and a letter from my accountant stating I have earned steady income as a daytrader since 2001. It was a pain in the ass process, but I eventually got a decent loan through WFC, after being turned down by USB (they did not approve of my occupation, even though I more than satisfied income and asset requirements.)

crgarcia · Mar 16, 2009

Quote from NERVESASTEEL:

I've been renting in Manhattan forever, but now am seriously considering buying. I have enough capital for a sizable down payment but am worried about Board acceptance and financing because of my occupation.

Does anyone know what issues I should expect to overcome because I'm an independent Trader???

Daytraders always had a bad reputation as most lose.
More even so in this economic environment.

Banks aren't lending, not even to professionals with PHDs, MBAs, etc.
Why they would lend to a daytrader?

Traders actually deserve to be margined from society.

Billy Valentine · Mar 16, 2009

Call yourself an "investor" and put 20% down.

Corelio · Mar 16, 2009

Quote from the1:

Exactly what you have to do. If you are a trader in the eyes of a lender you are a gambler. If you start and LLC and trade through your business you are a businessman. Traders can't get a mortgage -- simple as that. Start and LLC and list your occupation as "investor." Problem solved.

lol...good luck with that.
Folks on ET just crack me up on a daily basis.

NERVESASTEEL · Mar 16, 2009

Quote from cstfx:

Actually it would be better to look at White Plains or Jersey City's Gold coast area. Both offer 25-35% better pricing and an overall higher standard of living. And you are only 1/2 at most outside the city. (In JC, it is quicker to get to lower Manhattan than if you lived on the UWS or UES)

NYC is really over-played.

My wife and I have had this conversation many times. For better or for worse, we're married to Manhattan.

My lease is up at the end of September. If I canât find a great deal, Iâll just renew, no big deal. Everyone is so pessimistic in the city now! âDo you think itâs too late to sell â¦,â is the conversation that repeats itself over and over. I think Sellers will be extremely motivated come July/August. Right now Iâm just researching the market trying to estimate what a low ball bid might be for a 3BR, 2BTH, 1800 sq. ft., good location.

I may be early â¦ but I smell a market ready to capitulate!

MandelbrotSet · Mar 16, 2009

Quote from NERVESASTEEL:

My wife and I have had this conversation many times. For better or for worse, we're married to Manhattan.

My lease is up at the end of September. If I canât find a great deal, Iâll just renew, no big deal. Everyone is so pessimistic in the city now! âDo you think itâs too late to sell â¦,â is the conversation that repeats itself over and over. I think Sellers will be extremely motivated come July/August. Right now Iâm just researching the market trying to estimate what a low ball bid might be for a 3BR, 2BTH, 1800 sq. ft., good location.

I may be early â¦ but I smell a market ready to capitulate!

I hear you.

Money talks, especially in the price range that you are looking at.

Try to get creative with your deals. For example:

1. 30% to 40% down payment, and/or
2. Seller takes back paper,and/or
3. Seller lowers their price so that you can easily put up 30% to 40% down payment ... etc., etc.

If you've thought this far out, I am sure you have come up with some fairly creative ideas ... FTR, I think you are early, tool.