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Michael Le, Real Estate Pro in Denver, CO

Is any lender out there still doing stated income loans?

Asked by Michael Le, Denver, CO Sat Aug 6, 2011

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Everyday we speak to self-employed people here in California that are successful and have good credit but are routinely turned down by banks and brokers when applying for a loan to purchase or refinance their home.

The typical problem that self employed people run into is that they write off business expenses on their income taxes each year. It's a catch 22. If you write off most or all of your businesses expenses, it appears to a mortgage lender that your yearly net income isn't sufficient. On the other hand, if you do not claim many write offs for expenses, you immediately set yourself up for paying higher income taxes.

However, that no longer has to be an issue in your search for a home loan. We can now help locate specialized loan products tailor-made for self employed and high net asset clientele in California only.

We have access to new mortgage options such as:

1. 12 months of business or personal bank statements

2. 1 year tax returns (no more 2 year averaging)

3. Substantial assets

4. No income ratio for loans under 50% LTV

In the past, a majority of self employed people would simply seek out a stated loan in order to purchase or refinance property. After the housing and mortgage meltdown, many of these loan programs simply disappeared. Lenders soon became more stringent with their lending guidelines and it became subsequently harder for people who owned their own businesses to qualify for financing. Now that the real estate market is making its way back, a small number of lenders are now expanding their guidelines to become more attractive to certain buyers who have been neglected.

Give us a call at 800-598-9790 or visit http://www.selfemployedmortgageloans.com for more details
0 votes Thank Flag Link Thu Jul 25, 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
0 votes Thank Flag Link Thu May 30, 2013
I have not seen anyone offering stated income loans for some time now. The last client I helped purchase a property that was self employed needed 3 yrs W2, income statements, and positive balances sheets for his business(s). I wish you the best of luck.
0 votes Thank Flag Link Tue Jan 15, 2013
I have not found anyone that is currently doing stated income loans
0 votes Thank Flag Link Wed Jun 13, 2012
Hello Michael,
I personally have not come across anyone applying for one of these once popular loans so I can't say whether anyone is having success. A huge down payment is required. Thirty percent down will get you in line.

Small business owners have a shot. It's too bad if more of these loans are not being approved because people who don't receive a W2 can show they have substantial income.

Stated income loans come in different flavors. Here is a sampling of available information:
http://www.loanshoppers.net/stated.htm
http://www.guidetolenders.com/new_home_loan/articles/how-not…
http://www.trulia.com/blog/CondoLoanExpert/2011/04/no_inomce…

Good luck.

Best,
SuZ
PML of Longmont
0 votes Thank Flag Link Sat Aug 13, 2011
>>Shame on all you Nay sayers!

Uh, John, those aren't stated income loans you're talking about. We're not nay-sayers, just truth-tellers and realists.......
0 votes Thank Flag Link Tue Aug 9, 2011
Your Best best is to establish a Relationship with 1st Bank. I have a couple Investor clients using them for RE purchase money and they don't even have jobs! Ha! There is still hope for self employed individuals. They require great credit and good assets. You won't get FHA here but you can likely land 10% down programs for your first time Self Employed buyers even 25% down Investor programs for people Laid off form their corporate employers! Shame on all you Nay sayers!
0 votes Thank Flag Link Tue Aug 9, 2011
We all wish. It is great for those honest self employed people who don't find current lender requirements.
Private loans have no stated income! But who wants one of those? I've heard your credit union is more likely to help if you have a long term relationship with them.
0 votes Thank Flag Link Mon Aug 8, 2011
They have gone the way of the dodo bird and the Edsel.....
0 votes Thank Flag Link Mon Aug 8, 2011
I don't know about in Denver, but not NYC. I have never seen so much checking, re-checking and checking again by the underwriting depts.
0 votes Thank Flag Link Mon Aug 8, 2011
I dont think so. That was a few years ago and one of the reasons we are having these problems now.
0 votes Thank Flag Link Sun Aug 7, 2011
I don't think they are legal. Or at least I certainly hope not. They were never a fair and honest way to get a loan.
0 votes Thank Flag Link Sun Aug 7, 2011
Many states now have laws that the lender must document the borrower's ability to repay the mortgage. That law essentially eliminates stated income loans in many states even of there was a lender willing to offer them again. Since 2008, the mortgage market has been a full doc world.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
0 votes Thank Flag Link Sun Aug 7, 2011
I have seen one that required 40% down, your best bet is to ask local mortgage brokers if they have any programs for your area and what the criteria is.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Aug 7, 2011
Yes, but they require 50% down.
0 votes Thank Flag Link Sun Aug 7, 2011
Hello Michael,


I do not know of any lenders doing this & given the current conditions I doubt there is anyone providing a loan based on a stated income.
0 votes Thank Flag Link Sun Aug 7, 2011
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