Stated Income/No Income verified

Wow, what a difference from 1 year ago.

Stated Income and other types of no income verified loans have almost completely vanished from the market.  For as long as I have been in the business (over 10 years now ) there has always been some types of no income verified loans available. However, that may not be the case today.

No income verified loans were designed for those who don’t completely claim all their income come tax time. The people who benefited from these products were the self-employed borrowers and cash income people like waiters and taxi drivers.  These products served a need in the market place but have been lumped in with the rest of the credit crisis.

There are still a  few no income products  available, although they are being done at very low equity positions usually 75% and below.  If you a person with great credit, who has been running their own business for many years and can’t qualify for a loan based on your tax returns, you are going to need a hefty down payment.  These No Income verified products are still good loans and should be available to the right people, but the industry has been beat up to the point of no common sense.

The industry professionals know that we need to have these products available but we just have to wait for the dust to settle.  My advice for now is to analyze your income and really see if you need a no income loan. Many times customers had come to me saying they needed a No Income verified loan because of their situation, but on further review did qualify on a full documentation loan. If you are self-employed, make sure you are working with a loan officer who understands the complexities of self-employed tax returns and who can look past the adjusted gross income. Many times there are figures that can be written back into the income such as depreciation.  It is times like these where consumers really need the advice and professionalism of a true mortgage broker.

There are still a few dangling chad programs for the No Income verified, however review all your options first before deciding what route you need to take.

 In due time, it all comes back around!

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