kcd555, Home Buyer in 37214

is anyone offering stated income loans for self employed in Minnesota?

Asked by kcd555, 37214 Thu Jan 30, 2014

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Dennis Libby, Agent, Wayzata, MN
Fri Jan 31, 2014

Stated Income mortgages have been virtually eliminated. In Minnesoa, between Dodd Frank and MN DOC, ther is little or no room for this kind of loan at any level of downpayment. There may be a few rag tag, non conforming Brokers out there that will underwrite such a loan, but I hate to think what the interest rate would be. Being self employed for nearly 30 years, I know what you may be thinking about conforming loans and how hard the rules are on us, but as long as there is at least a credit score of 680, I have several reputable, conforming lenders to refer you to.
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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri Jan 31, 2014
I have never understood stated income mortgages. The borrower still swears in the application that the information is true. Especially if it is true I would never put in writing that my income doesn’t match my tax return. The same government that audits lenders is the same one that audits borrowers, that means they don’t even need a warrant to look at both sides. Do you think they can read this forum?

Good luck,

Good luck,
Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference:  http://jamessimms.com/
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Christopher…, Agent, Bloomington, MN
Fri Jan 31, 2014
I have a national lender that will do stated income loans. You need 30% down payment and a decent credit score of 640 or higher, but if you have those than absolutely yes.

If you don't have 30% down payment most self employed people I work with end up doing my contract for deed program. It allows you to buy any property off the MLS; not just what is advertised as only seller financing. That is only 10% down.

From there we work with a lender to just make sure you can refinance into the loan eventually. For stated income loans the benefit is you have a 30 year loan. For CD's there is a balloon payment after 5 years where you have to refinance.

If you would like to talk further feel free to contact me. You do have options though.

~Christopher Block
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Sherri Sherpy, , Saint Paul, MN
Fri Jan 31, 2014
No. In fact, MN was the first state (if I remember correctly) to ban stated income loans back in 2007. Joel is correct. with the new QM (Qualified Mortgage) and ATR (Ability to Repay) rules that just went into effect...thanks to the federal government, income will now be scrutinized like never before.

While write-offs for the self employed person is wonderful for tax purposes, it can be a deal breaker when qualifying for a mortgage. If you'd like us to take a look at your tax returns and analyze your income, any of us at iLoan would be happy to do that.

Sherri Sherpy
The MN Mortgage Mom
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Joel Johnson, Agent, Blomington, MN
Thu Jan 30, 2014
Not to my knowledge - at least I'm pretty sure they don't call them that anymore. As a matter of fact, new QM (Qualified Mortgage) rules just went into effect on January 10th. The majority of lenders anticipate an even "tightening" of home buying restrictions and criteria. I highly recommend you check further with iLoan at:
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