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
- 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
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.
Good luck to you in any case,
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
you say paystubs and credit exists ...why is there a need for stated income / asset program ?