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After disappearing from the mainstream mortgage market for nearly 5 years, stated income and no income mortgages are finally making a comeback. You may remember stated income loans – these are the ones in which borrower state their income on the loan application but are not required to provide supporting documentation such as tax returns, paycheck stubs or W-2s. Primarily used by business owners with generous write-offs up until late 2006, stated income loans are now available for both self-employed and W-2 employees. The general guidelines for stated income loans are as follows: • Up to 70% loan-to-value • Loan amounts up to $1,000,000 • Minimum credit score of 700 • Property must be located in California • Debt-to-income ratios not to exceed 40% • Property must be the borrower’s primary residence • Purchase, rate and term refinance, or cash out refinance allowed • Single-family homes, condominiums, townhomes and 2-4 units properties • The income stated must be reasonable in relation to the position of employment • No tax returns, W-2, paycheck stubs, or 4506-T are required • Borrowers must be U.S. citizen or permanent residents • Self-employed or W-2 employees allowed Unlike a stated income loan, where the borrower is required to state their income, on a no income mortgage the income section of the loan application is left blank and the borrower’s debt-to-income ratios are not calculated. No income mortgages are available for both self-employed and W-2 employees, and may be used to purchase or refinance a primary residence, second home, or investment property. The general guidelines for no income mortgages are as follows: • Up to 65% loan-to-value • Loan amounts up to $2,000,000 • No minimum credit score required • Property must be located in California • Borrower may finance up to 3 properties under this program • Purchase, rate and term refinance, or cash out refinance allowed • Single-family homes, condominiums, townhomes and 2-4 units properties allowed • Primary residence, second home or investment properties allowed • No tax returns, W-2, paycheck stubs, or 4506-T are required • Income section on the loan application is left blank • Debt-to-income ratios are not calculated • Self-employed or W-2 employees allowed • Borrowers may be U.S. citizens, permanent residents, or foreign nationals This is the perfect opportunity for people who are unable to qualify for a traditional full documentation mortgage to purchase or refinance a primary residence, second home or investment property. For more information on stated income or no income mortgages, call Lenderline® at 1-888-661-7888 or go to www.lenderline.com for more loan programs.
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