Elle Paris

2011 Stated Income Home purchase Loans still to be found?

Recommended Posts

Hello,

Your posts caught my attention while I was surfing trying to find out if stated income loans are still to be found for a home purchase in CA. We haven't ever gone VA (hubby ex-Marine) since such a VA loan, what with all the legal and true tax write-offs, the on-paper income/debt ratio won't work, even with the add back ins; so, although we could afford a nice but modest home with a monthly payment of $1500 or so, tax and insurance impounds included, we seem to be paying for the dead-beats. For the time being, the money we can put down is $13K but that sum is growing all the time despite the fact that our rent is $1295 monthly. Our credit scores are in the 730s. We are self employed in our thriving Mom/Pop service company est. 1986. Here's hoping that you will be inclined to reply and that you will have some options to suggest.

All the best, and thank you all for any tips...

Elle

Edited by Elle Paris
forgot a detail
Link to post
Share on other sites

Could anybody please reply with positive or negative remarks, or solutions, suggestions or observations? This is an important issue concerning many honest hard-working people who are paying for the dead-beats who lied about what they earn so as to get into a house they couldn't afford, resulting in the end of stated income loans as we knew them.

Is there any form of stated income loan to be found? ..perhaps for vets?

Link to post
Share on other sites

The stated income loans are pretty much gone from the market now. Yes, they were intended for small business owners and others who had a hard time proving their income. Then they were used for two spouses, but one had bad credit and their income could not be used because they would not qualify for the loan. Then there were others who simply abused the programs for what it was originally intended for, which made the big mess and high foreclosure rates on these loans.

There are a few lenders that may still be underwriting a similar loan, known as SIVA (Stated Income, Verified Assets). The qualifications for these loans would require a good deal of verifiable assets, so that the credit risk of default would be much lower. An example might be a hefty amount of retirement funds, that the borrower wants to keep in theses funds and not purchase a home and deplete their assets. Still the borrower would need at least a 25% - 40% down payment.

Link to post
Share on other sites

Thanks for your reply. Yes, that would be us: hubby-ex-Marine with credit scores in the 730s, small business owner for over 20 years and still going strong. Me, with 0 credit since the last credit I had built was in 1970 before leaving for France- back since 2006, married in 07, but no credit activity since I work as wife in the Mom/Pop business for free. we could afford a modest home between 200 and 300K but no stated income loans to be found.

If they looked at our accounts, they could easily see what we can afford to pay. How else could we swing it???

Edited by Elle Paris
spelling- oops!
Link to post
Share on other sites

Wait until you have a good downpayment and verifiable income.

FHA will accept a downpayment as low as 3.5%. You have to show verifiable income (tax returns in the case of self employed and bank statements + P& L's). If you can't show that you can support the mortgage then you probably can't support it and should not buy.

The only other way is to put down a larger downpayment, in the 20% or more range and get private financing also called seller financing. Hard money is too expensive generally, but it another consideration (the rates are very, very high and the terms are usually short term loans).

Link to post
Share on other sites

The notion of refinancing home loan is not a new scheme but a complex one and one should always go for experienced personnel to guide you. As the scheme can be a bit of a complex side, kindly refer to the words that your experienced personnel in the bank tell you and act according to that. Try and get information of this scheme and only then do go for such a scheme.

Link to post
Share on other sites
Guest
This topic is now closed to further replies.