topic Stated Income in Mortgage Loans

Stated Income

Anonymous — Fri, 25 Jul 2008 18:44:36 GMT

We were able to acquire our current loan two years ago on stated income. Has anyone found a lender who is still offering a stated income program? I know they are very few if any but if you have a recommendation I would appreciate it. Thanks!!

Re: Stated Income

ShanetheMortgageMan — Fri, 25 Jul 2008 18:49:35 GMT

25% down is the industry norm for that these days. What is the reason you are looking for stated income?

Re: Stated Income

Anonymous — Sat, 26 Jul 2008 01:09:00 GMT

I am self employeed and utilized my bank statements for our last loan to show our full income. We also used my husbands W2's. I also receive an inheritance check once a year which increases the income but only shows in the bank statements. We need to have a debt to income ratio which will not allow us to only utilize the W2's.

Message Edited by refi13 on 07-25-2008 06:09 PM

Re: Stated Income

ShanetheMortgageMan — Sat, 26 Jul 2008 01:39:18 GMT

I see your predicament. Unfortunately like you've probably already come to realize, bank statements loans are pretty much non-existant anymore, which is a bummer, because they legally allowed people who wrote off a bunch of income (like self-employed people, tip earners, etc.) to qualify with their gross income. Stated income isn't that way, with stated income you actually are supposed to state the income that you normally would qualify with if you were to provide tax returns/doing a full document loan. A lot of loan officers & borrowers abused stated income by just stating whatever income they wanted, or more commonly for self-employed applicants, the gross income before expenses, and perhaps they didn't realize it, but that is actually considered fraud. That is the #1 reason that stated income loans are nearly impossible to find today.

If you routinely receive an inheritance check and if it will continue in the future then odds are if you provide documentation regarding that you'll be able to use the inheritance as qualifying income, along with the bottom line "net" figure on your tax returns from your self-employed income + of course your husbands standard W-2's/paycheck stubs.

If your credit, down payment, and assets are strong enough you may be able to get an "income waiver" from automated underwriting where it does not require the verification of income (and sometimes even assets). It's nothing that can be guaranteed beforehand though, as the automated underwriting system is what determines if your overall situation "fits the bill" so to speak.