Financing in Massachusetts>Question Details

Michael Coff…, Home Buyer in Provincetown, MA

Are there any stated-income loans available in Massachusetts?

Asked by Michael Coffin, Provincetown, MA Fri Oct 8, 2010

I know they are next to impossible to find, and Congress is talking about making them illegal all together - but I own 2 businesses and have enjoyed stated-income programs from 4 different banks for nearly 10 years, never late with a payment, credit score 720 . I have an opportunity to pick up a $500K second/vacation property in a VERY desirable section of Cape Cod for <$200K, but my D/I ratio looks high (on paper). Would like to shop this around and see what is available, if the terms aren't TOO outrageous I could be ready to act immediately. The condo may be non-conforming as well, so may need to be creative with that (all of the Trustees have resigned and unit is in foreclosure).

-Mike

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BEST ANSWER
In Chicago, New East Asia (formerly Cathay Bank) is an asian bank that offers them. If they have a branch in your state, you could try there. My client used one of these stated loans and rate was favorable also to my surprise. Credit unions are another option, any lender that uses its own money but hard to find.

Good luck!
0 votes Thank Flag Link Thu Oct 14, 2010
LENDERLINE is offering Stated Income Verified Assets (SIVA) loans at up to 80% loan-to-value in California only. Guidelines are as follows:

• Purchase, rate and term refinance, and cash-out refinance allowed.
• Single family residences, PUDs, condominiums, and 2-4 units allowed.
• Primary residence, second homes or investment properties allowed.
• U.S. citizens, permanent residents, and foreign nationals allowed.
• No prepayment penalty.
• Up to 80% LTV maximum. LTV is based on occupancy and loan amount.
• Up to $2,000,000 loan amount. Maximum loan amount is based on purpose of loan and occupancy.
• 700 minimum credit score for U.S. citizens and permanent residents.
• No credit scores are required for foreign nationals.
• No rental late payments during past 12 months.
• No mortgage late payments during past 24 months.
• No history of NOD, foreclosure, short sale, bankruptcy, or repossessions.
• No unpaid judgments, liens, or collections.
• Income stated on loan application must be reasonable for the position of employment.
• No tax returns, paycheck stubs, W-2, 1099 or 4506-T will be required.
• Self-employed or W2 allowed.
• No industry exclusions.
• Debt-to-income ratios cannot exceed 45%.
• Employment must be verifiable by a CPA or IRS enrolled agent (for self-employed) or verbal verification of employment (for W2) with no reference to income.
• 100% of the down payment may be gifted for primary residence.
• 6 months PITI reserves are required. Reserves must be seasoned for 2 months and come from borrower’s own funds.
• The SIVA loan program is available in every County in the State of California.

For more information contact:

LENDERLINE
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Toll-Free: (888) 661-7888
Website: http://www.lenderline.com
1 vote Thank Flag Link Mon Jul 1, 2013
LENDERLINE is offering Stated Income Verified Assets (SIVA) loans at up to 80% loan-to-value in California only. Guidelines are as follows:

• Purchase, rate and term refinance, and cash-out refinance allowed.
• Single family residences, PUDs, condominiums, and 2-4 units allowed.
• Primary residence, second homes or investment properties allowed.
• U.S. citizens, permanent residents, and foreign nationals allowed.
• No prepayment penalty.
• Up to 80% LTV maximum. LTV is based on occupancy and loan amount.
• Up to $2,000,000 loan amount. Maximum loan amount is based on purpose of loan and occupancy.
• 700 minimum credit score for U.S. citizens and permanent residents.
• No credit scores are required for foreign nationals.
• No rental late payments during past 12 months.
• No mortgage late payments during past 24 months.
• No history of NOD, foreclosure, short sale, bankruptcy, or repossessions.
• No unpaid judgments, liens, or collections.
• Income stated on loan application must be reasonable for the position of employment.
• No tax returns, paycheck stubs, W-2, 1099 or 4506-T will be required.
• Self-employed or W2 allowed.
• No industry exclusions.
• Debt-to-income ratios cannot exceed 45%.
• Employment must be verifiable by a CPA or IRS enrolled agent (for self-employed) or verbal verification of employment (for W2) with no reference to income.
• 100% of the down payment may be gifted for primary residence.
• 6 months PITI reserves are required. Reserves must be seasoned for 2 months and come from borrower’s own funds.
• The SIVA loan program is available in every County in the State of California.

For more information contact:

LENDERLINE
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Toll-Free: (888) 661-7888
Website: http://www.lenderline.com
1 vote Thank Flag Link Mon Jul 1, 2013
LENDERLINE is offering Stated Income Verified Assets (SIVA) loans at up to 80% loan-to-value in California only. Guidelines are as follows:

• Purchase, rate and term refinance, and cash-out refinance allowed.
• Single family residences, PUDs, condominiums, and 2-4 units allowed.
• Primary residence, second homes or investment properties allowed.
• U.S. citizens, permanent residents, and foreign nationals allowed.
• No prepayment penalty.
• Up to 80% LTV maximum. LTV is based on occupancy and loan amount.
• Up to $2,000,000 loan amount. Maximum loan amount is based on purpose of loan and occupancy.
• 700 minimum credit score for U.S. citizens and permanent residents.
• No credit scores are required for foreign nationals.
• No rental late payments during past 12 months.
• No mortgage late payments during past 24 months.
• No history of NOD, foreclosure, short sale, bankruptcy, or repossessions.
• No unpaid judgments, liens, or collections.
• Income stated on loan application must be reasonable for the position of employment.
• No tax returns, paycheck stubs, W-2, 1099 or 4506-T will be required.
• Self-employed or W2 allowed.
• No industry exclusions.
• Debt-to-income ratios cannot exceed 45%.
• Employment must be verifiable by a CPA or IRS enrolled agent (for self-employed) or verbal verification of employment (for W2) with no reference to income.
• 100% of the down payment may be gifted for primary residence.
• 6 months PITI reserves are required. Reserves must be seasoned for 2 months and come from borrower’s own funds.
• The SIVA loan program is available in every County in the State of California.

For more information contact:

LENDERLINE
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Toll-Free: (888) 661-7888
Website: http://www.lenderline.com
1 vote Thank Flag Link Thu Apr 18, 2013
You only need to have 6 months self employed income on your most recent 1040 to use the income to qualify.
0 votes Thank Flag Link Thu Nov 18, 2010
Two separate S corporations though.... so the new one is only 1.5 yr old - so my previous income will not count, which is what I was told. (Previous income through a 16 yr position - I never needed to pull a paycheck from my first business, my husband did.) So while our combined income is higher than it ever was - full doc -- not having two years income from the second corp is making it so that I can't qualify for what I can truly afford. :( Or is that not true... ??
0 votes Thank Flag Link Thu Nov 18, 2010
BHWG-Being self employed does not put you into another catagory. If you can document your income then you will qualify.
0 votes Thank Flag Link Thu Nov 18, 2010
I'm in the SAME boat. Self employed - two business, 95K salary ON THE BOOKS! - 780 credit, loads of collateral but because we're self employed, it's insanely difficult to get a loan. I don't need to go stated but don't know how to do it any other way at this point. Was told flat out that just on salary alone, not including business assets and equity etc., that we'd qualify for a mortgage no problem. But because we're SELF EMPLOYED - we fall into a seperate category. So basically, if someone else owned my business, I could buy what ever I wanted. It's so frustrating.... who's a portfolio lender?
0 votes Thank Flag Link Thu Nov 18, 2010
>>>Try going to a portfolio lender not a mortgage agency

A portfolio lender being a lender that holds its own portfolio? Do you have any examples? It has been suggested that some credit unions hold their own portfolio.

-Mike
0 votes Thank Flag Link Thu Oct 14, 2010
If the equity position is strong, a private money lender may be the answer.
0 votes Thank Flag Link Thu Oct 14, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Try going to a portfolio lender not a mortgage agency
0 votes Thank Flag Link Thu Oct 14, 2010
Hi Jeff,

Thanks, that was helpful. There is a Cathay Bank branch here in Boston that still shows stated-income as an option. However, the "gotcha" is they'll only do 60% LTV (in addition to the higher interest rate). Still, it's good to know in case that's the only option.

-Mike
0 votes Thank Flag Link Thu Oct 14, 2010
Unfortunately they are not available. Banks have gone from one extreme to the other. They don't care how much equity you have, only your income to satisfy debt. And if you are self imployed its even more difficult. Best bet would be a hard money lender. Then refinance and or get an equity loan after you own it.

PS I can assure you that the 500k property is only worth the 200k you can buy it for or they would sell it for more.

HOpe this helps
Web Reference: http://www.louiswolfson.com
0 votes Thank Flag Link Fri Oct 8, 2010
Mike,

Even a stated program these days is going to have you sign a 4506 for the lender to obtain transcripts and if the transcripts don't match the stated income you are commiting bank fraud. I am sure you don't want to go down that road.

Just because you are self employed it shoudl not preclude you from qualifyingprovided you acurately report your income.
0 votes Thank Flag Link Fri Oct 8, 2010
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