After working on my credit over the last couple of years, I talked to a mortgage guy today. My scores are 655, 639, 579...a lot better than the 516 I had last time I applied. He said I can qualify for a 100% Stated loan, something along the lines that I don't need to document my income and such, and only need two months in reserves. Now, I have been set on the idea that my credit is bad, so I have never looked at anything other than nonconforming and FHA. (Well, it was bad up until last month, apparently a couple of my collections fell off/mysteriously disappeared) To me, this sounds great, but a little fishy, Has anyone dealt with this type of loan? No mortgage insurance, he said they will "adjust" your "income" to fit the debt ratio levels needed at whatever price you find, not much paperwork.... Any info anyone might have would be great! Saf
Usually with a "no-doc" (called so because they do not require you to document your income with w-2s, paystubs,etc), the interest rate is usually higher than with a conforming loan. You said you had looked at FHA and non-conforming loans. Why were you looking at non-conforming?
We were looking at non-conforming loans because my husbands credit is awful and that's all we could qualify for with him on there. His will take a couple of years to really clear up some and rise. With me alone on the stated loan, they apparently can tweak my income to cover the cost of a house we can afford on both our incomes.
In my case, we needed to be in the 700 fico range to get a competitive no doc loan. Usually with a stated income loan, you are going to get a lousy rate unless your credit is perfect.
