Is anyone doing no-doc or stated income loans any more? My credit score is 821, I have ~$70K to put down. Problem is sporadic paychecks/unemployment.

Asked by Kentucky Woman, San Diego County, CA Fri Nov 2, 2012

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Lender Line, , Newport Beach, CA
Thu May 30, 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
Suzanne Cole…, Agent, El Cajon, CA
Mon May 20, 2013
I currently work with lenders who may be able to qualify you. Please call me and let's see what we can do.

Suzanne Coleman
619-206-2784
0 votes
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Mon Jan 14, 2013
Hi. From the last reply, you see you'll need to be in Claifornia, have a substanial down payment, above average credit score, and have spotless credit. All of which combined would excluded the vast majority of applicants even in California. Not to mention your interest rate will more than likely be considerably higher as well. Perhaps by more than 2-5 pts over the norm!!! So, in short, the program is not really offered. And its being offered to take advanatage of the overly gullible and uninformed buyers. Don't be one of them.

if you have unpredicatable income and employment, would you really want to risk your present FICO/credit and cash reserves??? Do yourself a significant favor, that will pay you back substanial dividends, and simply wait. Wait until you have more stable employment and income. Protect your FICO, cash reserves, and peace of mind.
0 votes
Thanks, Rudy, but I am in California, I do have a substantial down payment, my credit score is near perfect, and my credit history is flawless. (All of this has been noted already.) And, as I have mentioned before, I've been living this sporadic-income life since 1998 and have still maintained my credit. I appreciate your desire to respond, but would have appreciated more if you had actually taken the time to read what I wrote before responding. Every single thing you mentioned as your way of adding to the conversation has already been discussed.
Flag Mon Jan 14, 2013
Kentucky Wom…, Both Buyer And Seller, San Diego County, CA
Mon Jan 14, 2013
Here's what I don't get... There are tons of loans out there now for people who have filed bankruptcy or have lousy credit. I have killed myself over the years to maintain my pristine credit. That means, even when things are rough and my paychecks are sporadic, I pay my bills.... on time, in full, and with no issues.

I have spoken with nearly 15 lenders in the last three months, and none have anything to offer me because my employment is not "steady for the last two years." Yet it really is. How could I have maintained a near-perfect credit score otherwise? I've been in the same field (education) since 1998, doing the same job (instructor), at several colleges/universities. I purchased two homes previously but now all of a sudden I'm poison to lenders. Someone who doesn't pay their bills is offered all kinds of programs and I'm given the bum's rush. I must be living in Bizarro World.
0 votes
Cory La Scala, Agent, San Diego, CA
Fri Nov 2, 2012
Hi There,

I guess lenders aren't doing them, or you'd have had at least a few responses.

When there's risk to a potential creditor, in this case you can't prove you'll be able to make the loan payments, you'll need to lessen the risk to the lender somehow. For loans, it's usually in the form of higher interest rates. If your only source for a loan is private money, from a private lender/investor, you'll be paying a LOT more in interest, which will lessen the amount you can pay for your property.

My suggestion would be to work on getting employment that will be enough to qualify for the loan amount on the home you want. I know it's more difficult now, but you do have a nice amount of money for a down payment, and if you can add to that, you'll be able to buy in two years, the amount of time lenders want to see you employed. $70K is enough for a 20% down payment on a conventional loan for a $350K home. Your payment would be roughly $1725/mo, so that's the payment you'd have to qualify for. If you're buying a condo, you'd have to take the HOA fee into consideration, so your purchase price would be less. Or, could buy something for less anyway, and have a higher down payment, and that will lower your monthly payment, so your income could be less.

Good luck to you, and let me know if you have any more questions.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421
Lic # 01443391
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