Are Stated Income loans still available?

paperboy · #1 (**permalink**) 04-20-2009, 10:33 PM

First post here. Was thinking about applying for a loan/mortgage, but didn't want to try until I know if it's even feasible. Previously I've gotten various mortgages, helocs, and most recently a heloan. I've usually got away with not supplying proof of income or even an appraisal. Afraid those days may be over.

Don't really need a loan, but wouldn't mind some extra cash on hand. Borrowed $75k a few years ago @ 6.99 fixed over 30 yrs. If possible I'd like to now borrow $100k @ 5%, since rates have dropped, paying off the balance of the other loan. It would have to be a stated income loan, and preferably without an appraisal, as they get so darn picky sometimes. Home's assessed at 267k (worth at least 225k...down from 300k), and we have perfect credit. Don't know what the score is, but it's never been an issue. I've been self-employeed for many years, and my income often isn't very substantial.

So...what I'm looking for, I'm guessing, is another stated income 30yr Heloan (to skip the appraisal), fixed @ 5%. But would settle for a regular 30yr. mortgage with appraisal, but also stated income. Is it even worth persuing either loan these days? Any insight from you financial buffs would be appreciated. Thanks!

Maria · #2 (**permalink**) 04-27-2009, 04:29 PM

First, I don't understand why you would want to borrow a $100.000 if you don't need it.
Second, I don't know of any banks that are doing "stated income" mortgage loans at this time.

paperboy · #3 (**permalink**) 04-30-2009, 01:24 PM

Thanks for your input Maria. The 100k I wanted to borrow would mostly go to pay off the balance of the 75k I borrowed a few years back. The balance, as mentioned in my initial post, is just to have some extra cash on hand. Maybe I'd purchase a neighboring lot I've had my eye on...or maybe something else.

Unfortunately, from an article I just read yesterday, it looks as though stated income loans may be outlawed by Federal law soon. So...it doesn't look like I'll be able to borrow any funds with such a loan.

It is disappointing, as I feel such loans with a low ltv really provide a very low risk to banks. If they're going to outlaw them, I would think just outlawing those with over a 50% ltv would be just as practical.

Once I had to qualify for a regular mortgage with verifiable income. All I did was fail to claim legitimate write-offs that year, so my income appeared higher. Guess that's what I'll do again if I ever need to refi.

GarySpicuzza · #4 (**permalink**) 05-01-2009, 08:13 AM

Quote:

Are Stated Income loans still available?

Yes.

Find a mortgage broker.

Maria · #5 (**permalink**) 05-12-2009, 11:16 AM

You are right, "stated income" loans are thing of the past. It sounds like you understand how banks works. If you don't claim your write-offs, you may have a larger tax liability, but I am sure you already know that. Good luck to you.

Maria · #6 (**permalink**) 05-12-2009, 11:18 AM

You are right, "stated income" loans are thing of the past. It sounds like you understand how banks works. If you don't claim your write-offs, you may have a larger tax liability, but I am sure you already know that. Good luck to you.

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