Obtaining a loan in a diff state then the 1 i live in

[soliver0012]

I put a post up in the financial portion of this forum but I was thinking perhaps a realtor might now:

I currently live in VA and pay a small amount of rent. I would like to move to AZ in a few months, but I want to purchase a house now. I have only spoke to one lender there and they say I cannot purchase until I have a job there. Is this a general rule or maybe lender specific?? Please help, also if anyone has any suggestions on lenders that would be great too. Thank you!!

[zatanaz]

Hello there,
It is possible to get a loan in another state but there are some issues related to this.
Since you don't live or work in AZ, the only way a bank will finance you a house is if you were buying it as an investment property.
You then will be considered an "Out of State Buyer".
Now, on investment properties, banks ussually will ask for a down payment 5-25% depending on your credit, they won't finance 100% and the interest rate is always higher than if you were purchasing your homestead.
The loan will have to be processed by someone with a license in that state, ie local AZ bank or local AZ mortgage company.

With that said, it is possible.

Good luck.

[HomeSurfer]

You sorta need to document that you will have an income that allows you to make your house payment. If you're moving without being relocated by your company, or you aren't self-employed on the internet or something, you're toast as far as O/O loans go. Investment property.

[PaulChapman]

If you have a job lined up in AZ, you can have a verification of employment done from your soon-to-be employer, as well as a letter of intent/explanation that justifies getting an owner occupied loan. Speak to a mortgage broker in your area.

To further clarify why you would rather have the owner occupied loan vs an investment property loan; you will automaticlly take a hit to your rate, aswell as needing a down payment if it is considered an investment property.

Although with the market changes in the past 48 hours, 100% financing on any property is getting tough.

[HomeSurfer]

If you have a job lined up in AZ, you can have a verification of employment done from your soon-to-be employer, as well as a letter of intent/explanation that justifies getting an owner occupied loan. Speak to a mortgage broker in your area.

To further clarify why you would rather have the owner occupied loan vs an investment property loan; you will automaticlly take a hit to your rate, aswell as needing a down payment if it is considered an investment property.

Although with the market changes in the past 48 hours, 100% financing on any property is getting tough.
Unless someone is willing to engage in a little fraud, that won't work for an owner-occupied loan. Lenders don't underwrite based on what your future is anticipated to be. They underwrite based on what your situation is now. The future is just a compensating factor.

The one exception is if the buyer/borrower is being paid to relocate by his employer or perhaps by a new employer (or perhaps you are dealing with Alt-A and/or subprime, a market that has incredibly dried up in the last three weeks, and a N/O/O A-paper loan would make more sense than most sub-prime loans anyhow).

[PaulChapman]

I've had a two of these circumstances go through, although now that I think about it the time period wasn't as far out as three months. Perhaps that was what swayed the underwriters.

A VOE with a hire on date, same line of work, salary, and a LOE and it was done.

[ScottsdaleHomes]

It may get kind of complicated for you unless like everyone says you can swing it as a second home with your income and you have a nice down payment , credit score etc...

Right now we have 50,000 + homes on the market, so no need to worry about inventory that's for sure.

Your best bet is to find a place that rents month to month until you close on your new home (which would typically be about a month after you get an accepted offer on the home you are purchasing).

I'm a Realtor in AZ. If you need any help feel free to let me know.

Cheers.