Financing in Seattle>Question Details

hyc2005, Home Buyer in Laguna Woods, CA

Are there any "stated income" or "stated assets" non-traditional loan lenders now?

Asked by hyc2005, Laguna Woods, CA Thu Jun 6, 2013

A friend of mine who wants to buy a property in WA state, has excellent job with excellent credit scores and can put down 35-80% as downpayment for a property (less than $250K). My friend can provide income paystubs, can have credit scores checked (over 770) but cannot go through full doc lengthy traditionanl process. Thanks!

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Well, we do have a program that is an "asset based" loan. The assets have to be in cash or readily liquid assets (stocks, bonds, mutual funds, gold, etc). The borrowers have to have a sufficient amount of liquid assets to last, via guidelines, at least 10-yrs at around a 42%+ back-end debt ratio. I have gotten an exception to this rule on a case-by-case basis. The total loan package is taken into consideration. This type of loan will be becoming much harder come January 2014 (Frank-Dodd). Please contact me for futher information. Thank you for the question.
1 vote Thank Flag Link Mon Jun 10, 2013
There are options for reduced documentation and or additional income programs and or down payment funding programs or down payment assistance for consumers Real Estate Financing needs.
Of course like anything, some work together and some can't.
What I mean by that is, some Loan Programs may be Combined with other programs and some cannot. Some Programs are only allowed in Specific States and some down payment programs are designated by counties within those states. Some are for clients who have been impacted by a Foreclosure or Short Sale and they want to return to the market now. Some are for Investors and Some are for 1st time buyers. Some allow the use of Gift Funds and some allow the use of a Non-Occupant co-borrowers. Some Loans are only for a Primary Residence and so on...
I could go on and on but to say it simply, everyone has a unique situation and goals and no two are ever alike.
Lastly, if a property has good equity and other factors are also favorable (like fico score , credit history) the DU (automated underwriting engine) will generate an approval taking in to account all the aspects of the file. So in essence you can get reduced documentation without asking for it.

That brings us to the end of this discussion and to summarize a path to your success:
(1) Whether you have had derogatory events in the past or not, or you are Self Employed or You are a 1st time buyer, Have all your Income, Asset, etc..paperwork prepared to be reviewed.
(2) Be a Saver and Not a Shredder Right now
(3) Get Prequalified from a Direct Lender and have them assist you with anything that needs corrected on your credit.
(4) Ask if there is more than one option for your Real Estate Financing needs.
(5) If you have challenges in gathering these items, ask me for the solutions.

Please feel free to contact me for accurate information
Sincerely
Michael Evans
0 votes Thank Flag Link Thu Mar 20, 2014
We have a stated income loan in Washington state as well as other western states ( California, Oregon, Colorado, Texas)
- 25% down to $834,000 or
-30% down for prices reaching $1.4M.
- 700 to 740 credit
Yes, it is in compliance with new 2014 laws and NOT hard money rates.

Not available on 30 Year Fixed, only 5 year ARMs
0 votes Thank Flag Link Mon Dec 16, 2013
Based on your question, that's not totally a stated income loan and can probably get what he's looking for.

If he has great credit, is putting down a large down payment and can provide SOME documentation, you may be able to close without a normal full-doc process.

For example, it's not uncommon for Fannie Mae's underwriting engine (Desktop Underwriter, also called DU) will recommend limited income documentation if the file is strong enough.

Its typical for this system to only request one paystub and last year's W-2. It will ask the lender to verify tax transcripts but we order them from the IRS and only requires the borrower to sign the form.

The natural conclusion is to assume a stated loan is what he needs but based on your question, he likely only needs to add one-year of W-2's with the items you listed and he's good to go.

Sam is correct also. Assed based income or asset depletion for income is also an option, which is still considered full-doc, even though we're not technically proving employment for income.
0 votes Thank Flag Link Tue Oct 15, 2013
Has your friend looked into a credit partnership structured by a lawyer in an LLC? Basically, the "cash partner" gets 70% units of membership interest and partners with a "credit partner" who gets 30% units of membership. It gets structured as a non-owner occupied transaction with the "credit partner" and your lawyer does a warranty deed transfer into the LLC. It's absolutely critical to discuss this with a real estate lawyer, as anyone doing this on their own can run into legal issues such as "Straw Buyer Transactions" and other tax issues.
0 votes Thank Flag Link Sun Jun 9, 2013
Dave is correct. There is really nothing out there. If you want me to contact Washington Federal & a few other portfolio lenders on their behalf, I would be happy to do that, but I would have to speak with your friend first.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
Web Reference: http://TriStarFinance.com
0 votes Thank Flag Link Fri Jun 7, 2013
Your best bet is to have a chat with a 'portfolio' lender, such as Washington Federal Savings. Good luck.
0 votes Thank Flag Link Thu Jun 6, 2013
no stated income or stated asset programs exist...if they have that much to possibly put down ..they might try to ask a seller to carry back the balance that they cant pay in cash

you say paystubs and credit exists ...why is there a need for stated income / asset program ?
0 votes Thank Flag Link Thu Jun 6, 2013
I am just seeing the reply below today .....intrusiveness is understood ...but this can be diluted / simplified for a ;low loan to value and depending on how straightforward your friends situation is ....sorry for dealy in the reply
Flag Thu Mar 20, 2014
Because traditional lending nowadays is very intrusive, restrictive (for example, debt to income ratio, etc. etc.) and so many rules and regulations. Yes, my friend can provide paystubs, credit scores check (A+) but do NOT want to go through intrusive full docs lending and willing to put down up to 80% of the downpayment. That's all.
Flag Thu Jun 6, 2013
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