Financing question

I think Lightstream goes un-collateralized for excellent credit. Unsure if that’s reported or not, but they seem to be extremely fast and easy to deal with.

 

Use Ferrari Financial Services. They do not report to the credit agencies.

 

If your mortgage application requires you to disclose all liabilities* then any debt not reported to credit agencies will be taken into account by the underwriter anyway. So, it may not affect your credit score but it could be considered when analyzing your overall debt and debt service requirements.

*Disclaimer: I haven’t applied for mortgage financing in many years so I’m not familiar with the disclosures currently required on residential mortgage applications.

 

If you think you can get a better return on your money than the financing will cost, then why put 100k down on the Ferrari? Logically, you should make the smallest down payment possible.

 

Agreed. We bought a new car for my wife a couple of years ago and could have easily paid cash, but with an investment portfolio doing much better than the loan rate of <3% it made sense to finance the whole thing, even the sales tax.

 

You are about to make the two largest purchases in your life. You can get opinions here, but you really should consult a CPA or tax attorney who knows your whole personal situation.

 

Since the OP is considering an auto financing lender that doesn't report to the credit bureaus, it indicates a willingness to deceive the mortgage lender. Failure to disclose the Ferrari loan on the mortgage app can have dire consequences, including criminal fraud charges as well as the bank immediately calling the loan if they find out about the omission. Here's something to read on that - https://www.mybanktracker.com/news/heres-what-lying-on-your-mortgage-application-will-really-cost-you

You can try to get away with it. Or you can be sensible and buy the house first. Prioritizing a Ferrari purchase before a house purchase is foolish, IMO.

 

Yes, especially if the lender is a federally insured institution or is selling the paper to FNMA then the consequences can be severe.

 

To be clear, I didn’t mean to imply that you could use FFS to hide the Ferrari from the mortgage company, simply that you could use FFS to protect your credit score. I would imagine that in the absence of full documentation, that credit score becomes even more crucial.

 

Yes no report to credit bureau from putnam, premier or Ferrari financial.
They do require solid w2’s , or tax returns, comparable borrowing


Sent from my iPhone using Tapatalk

 

Criminal charges… then half the country should be in jail.


Sent from my iPhone using Tapatalk

 

Without realizing it, you already have - me I was a CPA, working for Deloitte & Touche as a corporate auditor until moving on to a career in tech consulting. I maintained my CPA throughout my career although I never did tax work and never worked again in public accounting after leaving D&T.

For general financial advice in a situation like this, you'd be better off contacting a financial planner rather than a tax pro. I hope you can get the Ferrari and the house without putting yourself at risk. Both items are big money. You could, of course, pay cash for the Ferrari, which would be simplest. You may lose out on some investment gains, but at least you'd have the car and there'd be no worry about getting a mortgage when you find your house.

 

while I agree basically on your premise and you are correct but the word sensible and Ferrari purchase rairely go together

 

If the mtg company sees a recent credit inquiry, they will want to know if any new debt was opened, even if the new debt isnt on the credit report.

 

Years ago, I used Ferrari Financial while purchasing my F12. I was told that having a loan with FFS improves your MODIS score, which in turn opens up allocation opportunities in the future. I was told that I only needed to leave the account open for 12 months. In any case, I noticed that I never had an inquiry hit my credit report. I asked my salesperson how this was so and he replied, “…they just Google’d you”. YMMV.

 

They (Putnam and Premier) absolutely DO report on your credit report

 

Absolutely NOT. U are absolutely misinformed sorry. The credit pull is all they will report. Had many cars with them.
So I’m not sure what your source is but if you are a customer of them but you are 100000% unlucky if it’s the case.
They DO NOT report period.


Sent from my iPhone using Tapatalk

 

I had a loan with US Bank decades ago, we used to do a lot of business with them. I noticed that the load did not show up on my credit report and one day I asked my rep (one of a jillion VPs) why, he response was; “We don’t want anyone knowing about you”. Inferring that if they posted the loan other banks would solicit me for business. Don’t know if that is/was true, but that is what I was told.

So, perhaps it is a business decision to report or not.

 

You can ask what credit reporting services each lender uses, nothing wrong with that. Penfed, for example, only reports to Equifax, I had my car financed through them before paying it off early, and it never showed up on my Transunion report. I also had a loan through Stifel (Business Bank of St. Louis) and they didn't report at all. I refinanced my home last year, and the lender used Transunion, so my interest rate was better than it would have been had they pulled my Equifax report. Nothing illegal, it's just the difference between lenders.

 

Buy your ferrari with whatever you need to put down to get the loan. I used Bank of America, 2.2% and about 7% down. Stupid cheap money.

Due both finances with the same bank, if you go that route. They will be more helpful. I used. Bank America and easily became preferred platinum and got some nice discounts.

You said you don't have a house in mind, so when that comes up, weigh out your options.

1. Try and get a mortgage. If you're income can handle it, you'll be fine if you have no issue with appraisal.

2. If the car is in the way, once you find the home, buy it out and then get your mortgage.

Plenty of other options, but unless you have low income and lots of cash, you'll be fine.

Oh, and the non reporting loans are usually between 5 and 8%, and a couple have dumb fees.

 

Penfed is awesome ! Love them.


Sent from my iPhone using Tapatalk