Stated Income Loans

Discussion in 'Credit Talk' started by Smit, Sep 8, 2003.

  1. Smit

    Smit Well-Known Member


    What kind of credit score and credit do you need to get a stated income loan?

    My hubby pays me and I do some freelance work on a contract basis. My husband has direct depo from his work and I have no way to prove part of it is mine exept that I am on the account. My credit is better then my hubby's so it would be only me on the loan. I also have a judgement and some old collections but my score is around 624, 602.

    We are selling our house and will have about 5%-10% down.

    Is there anything I can do?
  2. snakeman

    snakeman Well-Known Member


    I seen at least one "underwritng guidelines" from a non-conforming lender that starts out their "stated income/no docs" loans at or above 500.

    The worst % rate though was lurking dangerously close to 9.5% for this type of loan. While the 600 range was getting around 6.5 to 7.5 depending on different variables.

    Your basically paying points by them taking your word for it. Be careful though as some may accept this but still want you to show proof of the year you received your DBA and bank statements and any money down may still need to be aged 30-60 days.

    Hope that sheds some light...

  3. SoParkDiva

    SoParkDiva Well-Known Member

    You will also need to show your income taxes and bank statements for the last 3 months.
  4. Smit

    Smit Well-Known Member

    I don't have my own buisness so can I still do stated? Also on the bank statements do they care where the money came from or just that it needs to be in there?
  5. Slavic

    Slavic Well-Known Member

    I have been researching the same topic and you should be able to get a stated with that score although as usual the good and the very best rates are reserved for 680+ 720+

    I focused my search on no doc rather than stated because some stated programs require asset verification (6 month reserve) and the difference between that and NINA (no income no asset verification) is only .125 to .25% or so. You might want to look into no doc programs that don't even do a telephone employment verification which stated and NINA programs will/might. Here are a few links I recently found on no doc programs I haven't contacted any yet:
    Easy Loan for Stated Income, No employment verification, Stated Assets, 100% Stated Jumbo
    No-Doc Application -
    No Doc Loan - Florida Mortgage
    No Document
    No Doc Loan programs explained
    No Doc Loans
    No Doc: 30 Yr Fixed; 2/6 LIBOR ARM; 3/6 LIBOR ARM 4502nd.pdf (application/pdf Object)

    If you can get your scores above 640 and are interested in HELOC You might want to look at They do stated up to 80% @640 90%@660 I don't know what rates they offer at that level, but a 730+ score was quoted 5.125 on 100% LTV stated (4.875 full doc) and if I remember correctly their range is 4-7% offers stated HELOCs from 620. It is my understanding that their rates are higher than quickenloan, but if I remember correctly, top out at 7% as well. These are the only places I found that offer stated income HELOCs. I was told by CSRs at other banks (bankone for example) that they often don't check at all unless score is "low" and/or amount is 95K+ One of the advantages of HELOCs is the under $500 closing cost (+ any state specific taxes). If you're not familiar with them basically HELOCs have variable rates based on prime and work like a credit card with a check book. You draw as much as you want when you want and pay interest on balance during the draw period typically 5-15 years and then either have a balloon or more commonly a repayment period of 10-20 years.
  6. Smit

    Smit Well-Known Member

    Thank you

    This could give me a good start.
  7. Slavic

    Slavic Well-Known Member

    The whole point of stated income (NI - no income verification) programs is NOT to have to document your income by check stub, income tax or bank statement.
    Stated programs, unlike NINA (no income no asset verification), do ask for 6 or so month monthly expenses in your bank account, seasoned, as in having been sitting in the account for at least a couple of months.

    NI adds .125%, NINA .25% to the rate you would qualify for with a full doc program.
  8. Slavic

    Slavic Well-Known Member

    With this in mind and if your hubby is a definite no go I think you're best off to focus on a no employment verification AKA "true no doc" mortgage.

    Here is a google search that will give you a good start:"+mortgage&btnG=Google+Search

    You will find some of the places I have previously listed there. You may need to work on your score to get it to 660. If you carry large balances transfer them to cards that are not in your name (family, business etc.) and keep only minimal balances. If your credit history is short and you have someone who is willing to put you as an authorized user on one of their cards, that's a great way to boost your score. Ideally the card should be as old as possible because as the oldest item on your report it will determine the length of your credit history and should have no or low balance.

    Here is a quote of some guidelines from the first source that comes up in the above search:

    A true No Doc loan requires no employment, income, or assets to be stated on your loan application. We do not verify any information beyond your credit profile and the value of the property.

    Some general guidelines for a No Doc Mortgage.

    * Minimum middle credit score is 660
    * 5 credit accounts are required. 3 may be from alternative sources-utility, auto insurance, etc. Housing history must have no late payments within 24 months
    * Bankruptcy and foreclosures must be discharged for 3 years with reestablished credit. Judgments must be paid before closing.
    * Two years employment with same employer
    * Two months PITI reserves are required with an LTV <=80%. 6 months reserves are required otherwise.
    * 10% minimum down payment is required from your own funds. No gifts. 20% for investment properties
    * 10 acres or less
    * A field review of the appraisal is required if the LTV is greater than 90%, loan amount is over $300,700 or your credit score is below 660
  9. Smit

    Smit Well-Known Member

    This helps even more. We may need to rent for 6 month while we get our credit scores up and pay off my judgement and small collections.

    The reason my hubby's score is so low
    (510-512) is because the house is only in his name and he we have had 3 recent lates on our 1st and 2nd mortgage due to a dip in his commisions. We have to transfer with his job inorder to get those commision up. Eventhough his credit looks better then mine as far as I know, no one will do a loan with those kind of scores with recent mortgage lates.

  10. ppt3

    ppt3 Well-Known Member

    Just closed on a stated mtg last month, 673 mid score. Very simple process. I researched for over a year before applying. Just reading & working different angles. I knew what to tell the broker & how to structure the mtg for the best terms. We closed at 6.85% . LTV & reserves make a huge difference for qualifying. Good luck
  11. Slavic

    Slavic Well-Known Member

    Re: Re: Stated Income Loans

    True, one of the reasons I thought she might have to get her score to 660 is that they are looking for 90% LTV. With a lower score one might be limited to a lower LTV as well as a higher rate.
  12. byyyatch

    byyyatch New Member

    I am a loan officer in TX and there is a program here that does a 95% LTV loan with a 600 credit score. Lender doesn't care where the money comes from. They just want to see 2 years of employment if you are a wage earner or a business license / cpa letter saying that you been self-employed for 2 years if you are self employed. Rate is kind of high though, 9.125% Let me know if you need any more help.
  13. J. Vick 71

    J. Vick 71 Well-Known Member

    How long does a bankruptcy have to be discharged for on something like this? FICO scores above 600 are usually not the problem. Do you need a certain amount of good accounts open for a time period to qualify for something like this after a bankruptcy?

    Even if there is no bankruptcy to take something like this. Is there a debt/ratio or are assets checked? Are assets or bank statements checked?
  14. byyyatch

    byyyatch New Member

    2 years discharged on this program. Assets are not checked and there won't be debt/ratio problem because we "state" the income to make it under 50% DTI
  15. mselfemps

    mselfemps Member

    Does a DBA certificate from the county and checking account since 95 count as evidence of self employment. Do not use CPA since do mine own.
  16. byyyatch

    byyyatch New Member

    Yes the DBA certificate would work if the DBA was opened over 2 years ago.
  17. Smit

    Smit Well-Known Member

    My hubby would never go for such a high intrest rate. We have made up our mind that since we are moving out of state that it would be better to rent for 6 mo to a year, get our credit back on track, save some money and find an area that we really want to live. Maybe then we can do a full doc or low doc loan and get a good interest rate.

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