Posted on: 29th Oct, 2009 03:46 pm
Everyone (mortgage professionals on this site),
A lender I work with is getting back into the stated income business in California. This is really good news for homeowners and self employed borrowers in that state. However, there are some strict guidelines....
Loan amounts of $418k - $1.5mm
Self Employed and Owner Occupied only
60% LTV for both purchase and refi
Maximum cash out of $300k
12 months PITI reserves
Now this is the kicker......you must have a $100k depository relationship with the bank at closing. Yes, the account is FDIC insured.
Products are the 5/1, 7/1 and 10/1 ARMs only and rates are below 6%
So, based on what I mentioned above, this is not for everyone. However, the fact that another bank is willing to cross over to the dark side is a good sign. There are so many self employed borrowers in California who really need stated income or no income verification mortgages and loans.
Long term, I believe the underwriting guidelines need to change for the self employed. They should be looking at income that is somewhere closer to the gross amount on the tax returns and not the net.
A lender I work with is getting back into the stated income business in California. This is really good news for homeowners and self employed borrowers in that state. However, there are some strict guidelines....
Loan amounts of $418k - $1.5mm
Self Employed and Owner Occupied only
60% LTV for both purchase and refi
Maximum cash out of $300k
12 months PITI reserves
Now this is the kicker......you must have a $100k depository relationship with the bank at closing. Yes, the account is FDIC insured.
Products are the 5/1, 7/1 and 10/1 ARMs only and rates are below 6%
So, based on what I mentioned above, this is not for everyone. However, the fact that another bank is willing to cross over to the dark side is a good sign. There are so many self employed borrowers in California who really need stated income or no income verification mortgages and loans.
Long term, I believe the underwriting guidelines need to change for the self employed. They should be looking at income that is somewhere closer to the gross amount on the tax returns and not the net.
Can you do Stated/Retired with your program?
Isn't this a promotion??? A new way to promote a company I guess...
this wouldn't qualify as a promotion, guest. eric didn't mention the name of a lender, didn't directly solicit business, etc. all he's doing is making known the existence of a lender that many people have been seeking for quite some time. though it's a limited sort of offering, i'm quite certain that there will be borrowers calling and writing to find out who this lender is and how they can take advantage.
frankly, inasmuch as this forum is designed for the interchange of ideas, knowledge and opinion, i think this is perfectly proper usage of a post. eric's giving us knowledge that many of us can use. i call that good news.
frankly, inasmuch as this forum is designed for the interchange of ideas, knowledge and opinion, i think this is perfectly proper usage of a post. eric's giving us knowledge that many of us can use. i call that good news.
