stated income loans

Hi credivin,

There are not many lenders and banks who offer stated income loans in this market. A few lenders in certain areas still offer this type of loans. But they also require you to put down a good amount of down payment, generally 30% of the purchase price. You will have to do extensive search to find a lender who would offer you stated income loans in this economy.

If you note the state and county in which the subject property is located, you may get better, more specific answers.

There are no national stated income programs that we are aware of.

There are some local programs in certain states and counties.

Forgive my ignorance, but how does a stated income loan work? It suggests the lender should more or less "take your word" for your income? doesn't sound right.

Many people are in a business where they cannot prove what they earn. However, you cannot just state ANYTHING you want. The income has to make sense for that particular profession.

most of the programs are strictly for self employed borrowers these days; w2 borrowers are far less likely to find programs available to them.

George is correct. The only exception to that (for some lenders) is if you have a job that relies a lot on cash. Waiter, bartender, etc

and i may be wrong in saying this, but i believe that virtually every stated income lender will be executing a 4506-T now and in the future. this will effectively kill deals for waiters and bartenders and all the other et ceteras unless they work in a pretty lucrative market...like las vegas once was.

George, yes one would think that every lender would require a signed 4506-T. However, only once have I heard of a bank actually requesting copies of the tax returns after the closing.

i think that's favorable news, eric. thanks.