Re-fi Mortgage No-doc loan

There are NO DOC--NO QUALIFY loans aren't there???

They are just a POINT OR SO above "NORMAL" (what ever that is)

 

Yes, there are NO DOC loans (no employment verification and a NINA.. no income, no assets), but there are also "stated" loans. Perfect if you are self employed. You just state your income. You'll need to be self employed for 2 years. You will need a biz license or a CPA letter stating that you have been self employed for 2 years.

You have a good score...keep it up!

Good luck!

 

Re: Re: Re-fi Mortgage No-doc loan

Heck yes, conforming rates for a 5 year fixed are in the low 5's, a 3 year in the 4's and 30 year fixed are in the low 6's.

What you need to do is see what your prepay is (usually 6 mos interest) and see if the savings is worth doing it now.

Hope that helps. Let me know if I can help further.

Sheila Palmer
RE/Loan Broker

 

Re: Re: Re-fi Mortgage No-doc loan

Stated income and No doc loans seem to be the craze these days. A borrower (and most loan officers) feel that if the income is dicey or the income is just not where it needs to be to make a loan go through that they automatically have to go with a stated income deal.

The problem with this is that there are many other solutions (yes yes, legal) to the problem that do not require the higher rate stated income or no doc loan. There are a few companies that capitalized on this knowledge and are offering "stated income loans for full documentation rates"....and they are touted as genius. The marketing IS genius, the solution to the problem is not.

OK OK I will get to the goods I have babbled enough. With the right ratio or equity, assets, and income, Fannie Mae and Freddie Mac will come back with their automated underwriting engines and give the loan officer requirements as far as how each item in your loan needs to be documented. For some, income may come up as 2 years w-2's, bank statements, and a full appraisal. With the right score, equity, and assets, however, your friendly Fannie Mae Underwriting engine (DU) might just come back with a "Verbal Verification of Employment", bank statements , and a full appraisal.

The companies that have capitalized on this have found out through trial and error that 10% equity along with a 700 or better credit score requires NO EMPLOYMENT DOCUMENTATION regarding amounts....you just verify the fact that the guy has a job or int he case of self employed borrowers that the person's business has been listed in a trade publication, telephone book, or an accounting firm has worked with said company for "x" amount of years.

SO............ lesson learned here is go into every loan (this is for loan officers as well) looking for the run of the mill Fannie Mae or Freddie mac good rate product. If income needs to be stated, state it in the underwriting engines and after all of the information is input see what they want as documentation. A lot of times you will be surprised in what you see. SOMETIMES, they don't even want to see an appraisal, SOMETIMES they could care less about the income, and sometimes....well often...a guy that was heading the stated income and no doc route got himself one thinker of a loan officer and found a way to legally, ethically, and advantageously get his borrower into a nice loan.

THIS....and only THIS kind of stuff is where mortgage professionals actually EARN their pay. Unfortunately too many of them are just like consumers and just take applications, submit the loans blindly, and pray for the best.

Hope this helps and I bet the difference in the pre payment penalty and the rate you can get NOW as apposed to next year will warrant a refinance sooner rather then later.

 

Re: Re: Re-fi Mortgage No-doc loan

I agee with ya willtygart. Didn't think going into that much "explanation" was neccessary. You are right a "good loan officer" can figure the best route to go. That's what they pay us to do.

 

Re: Re: Re: Re-fi Mortgage No-doc loan

You were refering to an actual stated loan here..which is a higher rate loa..available but not the same thing that I am talking about. Countless people (loan officers included) talk to me about stated income loans and how it is neccesary....when it is not. I am talkign about a full doc loan where you dont have to prove your income. STATED loans re STATED loans...and they are not offdered at the same rates as regular loans. This........is why I went into detail and I hope it helped you in your business as well.

 

Re: Re: Re: Re-fi Mortgage No-doc loan

You were referring to an actual stated loan here..which is a higher rate loan..available but not the same thing that I am talking about. Countless people (loan officers included) talk to me about stated income loans and how it is necessary....when it is not. I am talking about a full doc loan where you don't have to prove your income. STATED loans re STATED loans...and they are not offered at the same rates as regular loans. This........is why I went into detail and I hope it helped you in your business as well.

 

Re: Re: Re: Re-fi Mortgage No-doc loan

Could be...but Might not be. If you are talkign about the very best rate........it depends of course on what the underwriting comes back requiring. Now the bricklayer that decided to stop working for his boss and opening up his own masonry company is not going to be looked at as only having one year in that line of work, even if he only has one year of sel employed. The bricklayer that decides that he wants to go into mortgage and open up his own shop (as I did in the past), this guy will have a problem getting the very best rates the first year out of the gate.