Home Buying in Atlanta>Question Details

leifvaughan, Home Buyer in Temple, GA

My wife and I are buying a home. We need a stated income mortgage. My husband and I make good income but would prefer not to verify. both employed

Asked by leifvaughan, Temple, GA Fri Apr 11, 2014

- 730 credit score
- Home Price: $149,900
- $100,000 gifted to us but not in our account yet
- Putting $45,000 down on the home
- We own a current home, but will be renting it out upon purchase of the new home.

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The lender will more than likely share your viewpoint. They will "prefer not to lend" if you "prefer not to verify". Why wouldn't you want to disclose your income? Is it not sufficient income? Is it from ilegal sources?

There are new "Ability to repay" rules that require a lender document your income, the source of your income and anlyze your ability to service the debt according to federal guidelines. Your income must be from a legal source, must be steady, must have a history of receipt and must have the assumption of continuance for at least two years.

While i'm sure there is some nut job lender out there that will let you do a stated loan, I can only say I hope they don't for their sake, your sake and the sake of the market in general. Stated income loans, also known as "Liars Loans" were a very large part of the debacle that us industry professionals have had to endure for the last seven years.
0 votes Thank Flag Link Fri Apr 11, 2014
Not illegal. My income is high. We would put the home in my wife's name. I am in medical sales. my wife teaches preschool and her income is low, but her credit is very good. My credit took a hit during a prior divorce. We can afford the home, no worries.
Flag Fri Apr 11, 2014
I am sorry $5,000 + monthly income
Flag Fri Apr 11, 2014
We can provide bank statements showing $50,00 + monthly income flowing through the account
Flag Fri Apr 11, 2014
If you are successful in finding a loan, expect to pay above market rates. There are several flags here, I won't necessarily call them red flags, but stated income, gifted funds, keeping your current home, any or all of these could spell trouble even when stated income loans were common.
When I did stated income loans, we as a mortgage broker's office were still obligated to verify the income ourselves. Not everyone did this, and perhaps that's partially why we had the melt down.
As things progress, if you find a lender let us know.
0 votes Thank Flag Link Fri Apr 11, 2014
FYI - I can verify the gift. Bank Statements from the gifter, etc.
0 votes Thank Flag Link Fri Apr 11, 2014
you'll need their bank statements as well as your bank statements and they will make sure it's sourced for 60 days.
Flag Fri Apr 11, 2014
The old No-Doc loans are what helped sink the banks years ago and rules now make them extinct. They will be back again someday, but not today.
0 votes Thank Flag Link Fri Apr 11, 2014
The situation seems truly in favour of you from housing loan or mortgages point of view. Though you need to provide actual & correct information to the financial institutes, basis on which your required sum will get easily encashed.
0 votes Thank Flag Link Fri Apr 11, 2014
Good luck with that. Lenders require proof of what you earn -- and they are going to want documentation for that $100K gift. They want to know you have the ability to repay the loan, and they want to know how you got your $$. They are looking for illegal and fraudulent activity. This is why the market crashed -- lenders were handing out loans like giving candy to babies, and not requiring any sort of income verification. People were getting loans who shouldn't have been. Everyone is paying the price now with much stricter lending guidelines.
0 votes Thank Flag Link Fri Apr 11, 2014
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