ok, ok here's the basic rundown.
we have a relatively new business. We've actually been doing business for a year, but just started working under our own business lincense as a single person LLC. It's a horse-related business and doing fabulous. My husband has had a steady job for about 3.5 years and also doing GREAT.
I have awesome credit, he has not so awesome credit.
We want to buy a property that is 60 acres with a totally adequate house for us and almost everything we'd need to relocate our horse-related business.
We've decided that our budget (amount we'd need to borrow)is somewhere around $500,000 - we've been pre-approved/ qualified for a mortgage of that amount.
This is my first time dealing with something like this and so a lot of questions are coming up because apparently its a kind of complicated and special situation.
I am applying alone without a co-borrower because my husband is pretty convinced that his crappy credit (from about 5 years ago that is still repairing itself) will really screw up our chances for this (as it did when we were buying our truck).
However there is that whole problem of me not really having great documented income. The income that I do have fluctuates as clients come and go and horses finish training and come into training, but it is always enough to pay our estimated mortgage payment on $500,000.
Of course my husbands income helps too, but I know that lenders can't consider that because he's not a co-borrower.
So I'm sort of confused on the types of documented income vs. stated, vs. no doc.
What will I need? Which one is best? and how do the types affect the APR and types of mortgages we can get?
Also, I have been told that there are only certain types of mortgages that we can get for a property of that size - 60 acres. How does this affect us?
Then there is closing costs. We have the money for the down payment, but that basically wipes us out unless we deplete everything that we know we'll need to operate and live and settle in for a few months. I was told that that can be wrapped up in the mortgage by sort of saying that the price is higher - so how do we best express that to the owner/realtor so that they understand that our offer is actually $xxx,xxx but we're going to pay them more and then I guess recoup the closing costs so that we can pay them? totally confused.......
i know that's alot for you guys to read and help me with, and i know it sounds like I'm totally clueless, but I am. I have a few people helping me, but I am horrible on the phone and need someone to explain it to me who has nothing to gain.
It seems like there are so many options out there that there has to be something that will get us this property (which I am head over heels in love with as is my husband).......right?
but being so many types (interest only, jumbo, combo etc. etc. ow my head!) I am just getting more and more confused!!!!!
anyways I'll take any help you can give me!!!