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Home Repair Loans and Home Access Grants, low income loans.#Low #income #loans


Home Repair Loans and Home Access Grants

Home repair loans help low-income homeowners pay for needed and critical repairs. Our goal is to eliminate unhealthy or hazardous conditions, eiminate barriers to accessibility, improve safety for persons with physical disabilities and incorporate energy conservation measures that reduce energy costs and usage.

We provide loans to low-income homeowners for needed and critical home repairs and small grants to low-income persons with disabilities to make their homes more accessible.

Loans and grants currently available and income limits are listed below.

Fill out an inquiry to find out if you are eligible!

Home Access Grants: For low-income persons with physical disabilities to improve access and safety. (Some renters may not be eligible.)

If you have other quesitons, email us or call 503-655-8591.

Home access grant

Low-income homeowners (and eligible renters) with physical disabilities may be eligible for a grant up to $5,000 to cover the cost of improving access and safety. Examples of eligible improvements: wheelchair ramps, handrails and widened doorways, kitchen or bathroom accessibility improvements such as roll-in showers, raised toilets and grab bars. (For renters in apartments, at least 51 percent of the units in the structure must be occupied by low-income households.)

Home repair loans

Single Purpose. Maximum loan: $15,000. Health or safety item only. Examples: water/well, septic/sewer, roof or heat. Primary heat source only — woodstoves pellet stoves are considered a secondary heat source. (No equity required.)

Exterior Repairs. Maximum loan: $25,000. Examples: Roof/Gutters, Paint, Weatherization, Windows/Doors, Foundation. (Credit and equity requirements apply.)

Complete Repairs. Maximum loan: $35,000. Complete home repairs must meet Community Development rehab standards.

Basic loan requirements

Home must be located in Clackamas County and must be in need of repair

  • Applicant must own or be buying property and must be in title
  • Owner must live in property
  • Property taxes must be current
  • Applicant must have sufficient equity

Deferred Payment Loan (DPL) terms

Low 3% per year simple interest. Payments are deferred — no monthly payments.

Deferred as long as homeowner lives in home, or until sold, title transferred, refinance, or change of use.

Loans are secured by lien on property.

Current annual gross income limits effective April 14, 2017

The household’s annual gross income must be less than 80% of the County’s median income. The current limits that apply to loans and grants are shown below.

Other information

  • Loans for exterior repairs require that the exterior of homes be brought up to HUD’s Housing Quality Standards (HQS) and Clackamas County’s minimum rehab standards.
  • Loans for a single purpose are limited to one health or safety item only.
  • All work must be done by Oregon-licensed and bonded contractors.
  • Manufactured homes in parks do not qualify for a loan. (OK for a Home Access Grant.)

Contractors

We are currently soliciting for contractors who may be interested in bidding on projects in the Housing Rehabilitation Loan Program. Contractors on our list must be licensed, bonded and registered with the State of Oregon Construction Contractors Board and have experience in housing rehabilitation.

We do not recommend or endorse any contractors. Contractors on the HUD debarred list are not eligible to apply.

If you are interested in working with our program, please complete the contractor information application and return to our office. Please include copies of your CCB registration, insurance certificates and certifications of specific trades, including asbestos or lead-based paint.

Applications and supporting documents may be mailed to: Clackamas County Community Development, 2051 Kaen Rd., STE 245, Oregon City, Oregon 97045; Faxed to 503-655-8563; or emailed.

If you have any questions or need additional information, you may call County Rehab Specialists, Jayson Tidland or Mike Woolman at 503-655-8591.

Low income loans

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Low income loans

Low income loans


Stated Income Loans, Self-employed Mortgage Without Tax Returns, stated income loans.#Stated #income #loans


What Are Stated Income Mortgage Loans?

A Stated Income Loan is a loan program that does not require borrowers to document their source of income with pay stubs, 1099s, or 1040 tax returns to the lender although they declare it on their application.

So, if you are a self-employed business owner or an independent contractor, you DO NOT have to provide those documents to get loan approval if all other criteria are satisfactory to the lender. No IRS tax returns for personal or business are required.

Borrowers will simply state their income on the loan application and underwriters will review the file based on the borrower’s credit score, assets, bank statements, and occupation type. Some lenders refer to this loan type as a No Income Verification Loan (NIV).

Stated income loans Stated Income Verified Assets Loan: (SIVA ) Borrower approval is based on your credit history, verifiable liquid assets, and of course the income you input on the application. If your income is X amount, then the verified assets should correlate to the income the borrower(s) puts down on the application. As a niche loan (Non-QM), this program is limited to certain states (currently just California), and requires equity ranging from 30% to 40% down for purchases and refinance.

For example, let’s say an owner-occupant applies for this lite doc loan. They can purchase a $625,000 home with 30-percent down or a $1.3M single family residence with 35-percent down, IF approved by underwriting.

Stated income loans Are These Loans Available in My State?

YES – CALIFORNIA This loan will be from a private lender only in major cities such as Los Angeles, Newport Beach, San Diego, Santa Barbara, San Jose, Sacramento, and San Francisco as well as Orange and Riverside counties.

70% financing up to $1.5 million – Primary Residence*

65% financing to $1.5 mil for investment property

Minimum Loan Amount: $417,001

Reserves as low as 6 Months

Self-employed and W2 OK

Cash back refinance up to $300k

No Prepayment Penalty

* depends on the program. Some are 70% to $625,000

Refinance is 65% or less

ALL OTHER STATES – available ONLY for rental properties

Stated income loans

Updated March 2017. Under this program the borrower(s) does not submit IRS form 4506-T to the lender which lets them retrieve a copy of your filed tax returns.

Alternatives to Stated Income

If you are NOT eligible for the program above, see if you qualify for the qualify for the bank statement mortgage program where NO tax returns and NO 4506-T forms are needed.

If your income is low on your 1040’s 2 years ago, but this past year it is higher, see if you qualify for the 1 Year Tax Return where the lender only reviews a copy of your most recent filed tax year. (click here)

Finance your 1-4 unit Investment Property without your job or income disclosed.

Qualify based on income of subject property

(click here and go to “investors” tab)

To offset the lack of availability, there are a few portfolio private lenders and small regional banks that still offer stated loans, but NOT large financial institutions like Bank of America, Wells Fargo or Chase. Please discuss your loan options with a designated NMLS licensed originator or lender.

Stated income loans

(updated March 2017, Contact us for rules)

Requirements for Stated Income Home Loans:

Lenders typically want applicants to have at least a 2 year history of self-employment in the same industry. Self-employed borrowers can prove their job history by obtaining a letter from an accountant or CPA on their company letterhead to get verification. It can be any accountant or CPA as long as they have reviewed your taxes.

Additional ways to prove self-employment are to: Stated income loans

1.) provide two years of business license copies or

2.) confirmation from (3) business associates who have no interest in your business. The income stated on the application is what qualifies you for the loan, so do not underestimate or substantially exceed the income you make. The amount you insert must be typical for your line of work otherwise a red flag will be raised. A federal signed 4506-T tax form may be required by the lender prior to closing (At present, it is NOT required).

Borrowers generally need credit FICO scores above 680

No short sales, foreclosures, bankruptcies, or repossessions

– No unpaid judgments, liens, or collections. (collections of $500 or less are sometimes allowed)

Loan Programs offered on 5 7 year ARMs 30 year fixed. The borrower should have a minimum of 6 to 12 months of the mortgage payment in personal liquid cash reserves on a purchase or refinance for the best rate.

At times, lenders may request you to have 10% to 20% of stated income in Liquid Cash Reserves on large jumbo loans. Reserves can be from checking, savings, CD s, money market accounts,cash, stocks, bonds, IRA s, 401k s, and Keogh accounts.

On cash out refinances, reserves can come from the loan proceeds although the credit score may need to be higher. The other programs (30 year and 15 year fixed) require less reserves.

NOTE: The terms and conditions and availability change frequently on these loans. Currently, stated income loans are being provided by a select few mortgage companies and portfolio lenders in California, New York, New Jersey, and Massachusetts with rates ranging from .50% to 2% higher than conventional rates. It just requires some extra legwork to accomplish your financial goals since it is now an uncommon program so check back often.

To get a rate quote and see what lenders have to offer, try our simple FREE Pre-Qualification process today.

No Income Verification Mortgages Are Intended For Who?

The loan program was originally intended for self-employed professionals such as doctors, lawyers, stock brokers, realtors who have multiple expense write-offs on their tax returns that significantly reduced their gross income although their lifestyle was much higher than their adjusted gross income on their tax returns.

The eligible guidelines are expanded with some lenders for borrowers who receive a salary plus cash that is not documented. A good example would be a restaurant server (waitress, waiter, bartender), caterers, shuttle limo drivers, and similar service jobs. In addition, borrowers who regularly receive monthly rental income from occupants or travelers from a verbal agreement and nothing signed to prove the source would fit into this type of financing.

If you re a neurosurgeon, it would not be a surprise to claim that you make $40k to $50k a month. However, if you re the average neighborhood barbershop charging $10, underwriters will have a hard time believing your claim of raking in $15,000 month after month. The odds against it are very huge for that line of work.

Consequently, a lot of loan applications submitted with incomes deemed to be inflated will not be approved. These are the borrowers who made the term liar loan before 2007 a reality when they were approved.

It s not uncommon to have a loan request rejected when the stated income figure they use does not correlate with the job title or position. Most underwriters ascertain a borrower s normal earnings based on their profession, years of experience, and job location with Salary.com.

Often, investors and people who don t want to show their tax returns inquire about stated income or no doc loans for residential financing but they exist as well on commercial property loans. So, investors can also apply for the program on a 5+ unit property too.

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* NOTE: Loan programs are subject to change without notice. We are not a lender. We simply display popular loan programs that mortgage companies are utilizing in the ALT-A market.

Stated income loans

Find a Commercial Mortgage without income documentation for your cash flow generating property such as an apartment building, office building, and retail properties.

Stated income loans


Low-Income Mortgage and Home Buying Programs in the U, low income loans.#Low #income #loans


Low Income Home Loans and Housing Support Programs

By Brandon Cornett | 2017, all rights reserved | Duplication prohibited

First, the bad news. There aren’t as many low-income home loans and housing programs as there used to be. Some of them were put on “hold” during the housing crisis and subsequent recession. Others were discontinued entirely.

Now for the good news. There are still plenty of home-buying programs for people with below-average income. You just have to know where to look. And that’s where we come in. On this page, you’ll find a collection of links and information relating to low-income mortgages and other programs for buyers.

3 Types of Low-Income Mortgage Help

You’ll find a list of programs below. But before we get to that, I want to give you some background information. There are several types of low-income home buying programs available today. They all provide mortgage assistance in some way, either directly or indirectly.

There are three types of programs designed for low-income borrowers:

  • Mortgage insurance — This is when the federal government (or some other entity) insures the mortgage loan made by a private lender. This form of government backing makes it easier for borrowers to qualify, even when their income might disqualify them for a conventional mortgage. FHA and VA loans are a good example.
  • Direct lending — In some cases, the government will make loans directly to low-income borrowers (without going through a private lender). The USDA rural housing program is an example of this type of assistance.
  • Grant programs — This is when the home buyer is given a monetary grant from a non-profit or government agency. This is another way for people with low-income to buy a home.

All of the programs mentioned below fall into one of these three categories. So let’s take a closer look at those programs:

You should research the low-income home buying programs in your state as well. Most states offer some form of assistance for local buyers. Sometimes it takes the form of educational counseling. Other times, it comes as direct financial aid or grants.

There are too many state programs to list on this page. Google is the easiest way to find pertinent information for your area. Just do a Google search for home buying programs or low-income home loans, followed by your state. You might be surprised by the number of resources you find.

You can also find a state-by-state list of programs on the Department of Housing and Urban Development (HUD) website. They have a list of low-income mortgages, grants, educational programs, and other types of assistance.

For example, the Ohio Housing Finance Agency (OHFA) has helped thousands of low- and moderate-income residents purchase a home. I found out about this by using the HUD guide to local programs, and drilling down to the assistance options for the state of Ohio. Their website is a great place to continue your research.

Here’s the link you need:

Today, there aren’t as many low-income mortgage programs as there were in the past. But with a bit of homework, you might find the type of assistance you need. Look into the federal programs we discussed earlier. Next, find out what’s available in your state by using the HUD web link provided above.

Federal Housing Administration (FHA) Loans

If you’re exploring low-income mortgage options, you should look into the FHA program as well. This program is not limited to borrowers with low income. It’s just well suited for them. The Federal Housing Administration was formed under the National Housing Act of 1934. The FHA insures home loans made by approved lenders. If the borrower defaults on the loan, the lender gets reimbursed by the federal government.

This program is not a free pass for under-qualified borrowers. You will still have to show you can afford your monthly mortgage payments, as you would with any other type of mortgage loan. The lender will review your income and your debts, to see how well you could manage your monthly payments. In addition, you’ll have to make a down payment of at least 3.5 percent of the loan amount. So it’s not a handout by any means. But it does open up some doors for low-income borrowers seeking a home loan.

Your upfront costs will probably be lower on an FHA loan than they would for a conventional mortgage (one that’s not insured by the government). And you might find it easier to qualify under the FHA’s guidelines, even if your income falls short of conventional standards. That’s why it’s included on this page.

Learn more about FHA requirements:

Find an approved lender in your area:

USDA / Rural Housing Loans

Do you live in a rural area? If so, you might qualify for a low-income home loan through the United States Department of Agriculture (USDA). This housing program is designed for people with low or very low income. I put those words in quotation marks, because the government has specific definitions for them:

According to their guidelines, very low income applies to people who are below 50 percent of the median income for the area in which they live. Low income applies to people who earn 50 – 80 percent of the median income.

These are also referred to as Section 502 home loans. They can be used to buy, build, renovate or relocate a home (if you meet all of the program requirements). This program is unique in that the federal government makes the loans directly to borrowers. In other low-income programs, the government only insures or backs the loans. In this scenario, Uncle Sam acts as your lender.

Applicants must currently be without adequate housing. You must also have sufficient income to cover your mortgage payments. Loans made under this program typically have monthly payments that amount to 22 – 26 percent of the borrower’s income.

Low-income home loans made through the USDA / RHA program usually have a term of 30 years. But the term may be up to 38 years for those who cannot afford the monthly payments on a shorter-term, 30-year loan. (Stretching out the term reduces the size of the monthly payments, since they are spread over a longer period.)

You cannot buy a high-end home with one of these loans. The property being purchased must be modest by local standards. There are loan limits in place as well, and they vary based on the area in which you live.

Where to learn more:

Counseling Programs for Home Buyers

If you haven’t done so already, you might want to schedule a meeting with a HUD-approved housing counselor. These folks offer free and low-cost training sessions to anyone who wants to buy a home.

Housing counselors can be found all across the United States. They receive training and certification in various aspects of the home-buying process, and then they get the HUD seal of approval. They can help you sort out your options for getting a mortgage loan, managing your debts, improving your credit and more.

Visit this section of the HUD website and click on your state:

Housing Assistance for Renters

All of the information above pertains to low-income home loans. Thus, it pertains to people who are trying to buy a home, as opposed to renting. If you are seeking housing assistance of a rental nature, you should look into the Housing Choice Voucher program (more commonly referred to as Section 8).

Here’s the link you need:

Through this program, the federal government pays rental assistance to participating landlords, on behalf of the tenants. So, essentially, the government is paying some of your monthly rent. Visit the HUD website above for more information.


What Is a Stated Income Home Loan, The Truth About, stated income loans.#Stated #income #loans


What Is a Stated Income Home Loan?

Stated income loans

In short, stated income loans allow borrowers to simply state their monthly income on a mortgage application instead of verifying the actual amount by furnishing pay stubs and/or tax returns.

This simplified method was originally intended for self-employed borrowers with complicated tax schedules, but became widespread in the lead-up to the financial crisis, often because borrowers found it that much easier to qualify for a loan by stating their income.

For that reason, stated income loans are also occasionally referred to as “liar’s loans” because it is suspected that many borrowers fudge the numbers in order to qualify for a home loan. Back to that in a minute.

How Does a Stated Income Loan Work?

Stated income loans

Well, it’s fairly straightforward, though it does depend on documentation type because there are some different types of stated loans.

A full documentation loan requires that you verify income with tax returns and/or pay stubs and also verify assets by providing bank statements or similar asset documentation. That’s just listed here for comparison sake; it’s not a stated income loan. It s the typical way a mortgage borrower is underwritten.

A SIVA loan, or stated income/verified asset loan, allows you to state your monthly gross income on the loan application and requires you to verify your assets by furnishing bank statements or a similar asset document. By state, I mean just inputting a gross monthly income figure on the loan application.

A SISA loan, or stated income/stated asset loan, allows you to state both your monthly gross income and your assets. In this case, both items are simply stated, and the bank or lender will not ask you to verify the information.

In all these examples, a debt-to-income ratio will be generated because income figures are provided, even if it isn t actually verified.

In cases where a borrower doesn t even fill in the income box on the loan application, it is referred to as a no doc loan. See that page for more details.

Bank Statement Loans and Asset Qualification

Nowadays, it s a little more complicated. There are new methods of stating income post-mortgage crisis such as alternative-income verification loans and bank statement loans.

Instead of simply stating what you make, the lender will ask for at least 12 months of bank statements, maybe 24, to determine your income. These can be personal bank statements, business bank statements, or both.

They will then calculate your monthly income by averaging those deposits over the accompanying 12- or 24-month period. If you re a self-employed borrower, you may also be asked to provide a Profit and Loss Statement (P L) that substantiates the deposits.

Again, everything needs to make sense, and any large deposits will be flagged and require explanation. In other words, taking out a loan or having someone make deposits into your bank account will likely be noticed/scrutinized by the underwriter.

There is also a way of qualifying for a mortgage using just your assets, with no requirement to disclose income or employment. This method requires borrowers to have a lot of liquid assets.

The lender usually adds up all your assets (checking, savings, stocks, bonds, 401k, etc.) and subtracts the proposed loan amount and closing costs. Then they total up all your monthly liabilities, such as credit card debt, auto loans, etc. and taxes and insurance on the subject property and multiply it by a certain number of months.

Let s assume a $400,000 loan amount and $800,000 in verifiable assets. And pretend our borrower owes $3,000 a month for their car lease, credit cards, and taxes/insurance. They ll multiply that total by say 60 (months) and come up with $180,000.

Since our borrower has more than $180,000 in verified assets remaining after the loan amount is deducted, they can qualify for the mortgage using this method. Note that reserves to cover 2+ months of mortgage payments and closing costs will also usually be required.

Then there s so-called asset depletion, which again favors the asset-rich, income-poor borrower. These types of loans are actually backed by Fannie Mae and Freddie Mac and are calculated a bit differently.

Generally, the lender will take all your verifiable assets and divide them by 360, which is the typical 30-year term of a mortgage represented in months.

These assets may be assigned a 100% value if cash, and perhaps 70% if they are retirement funds and you are below retirement age. Once tallied up, the figure is divided by 360 and that is your qualifying monthly income.

For example, if you have $1,000,000 in cash and $750,000 in retirement, you d have a total of $1,525,000 ($1m + $525k).

We then divide $1,525,000 by 360 and come up with around $4,250 per month in income. As you can see, a very asset-rich borrower can t get very far using this method.

However, the lender may be able to add other income such as Social Security, pension, etc. to stretch the numbers a bit further, or use a shorter term, such as 180 months if it s a 15-year fixed.

This type of loan might be well-suited for a retired high-net worth individual.

Employment and Credit Still Verified on a Stated Loan

In some of the cases above, the bank or lender will verify your employment by calling your employer, or request a CPA letter or business license if you are self-employed.

If you re retired, they obviously won t, but they ll still want to verify any retirement income you take in.

This is important because your job title will determine what you can reasonably state in the way of gross monthly income.

If you’re a doctor, it’d be normal to state that you make $50,000 a month. But if you’re a kindergarten teacher, underwriters won’t believe that you’re making $10,000 a month. It’s just not likely, nor does it make sense for the position. And for this reason, many loans that “overstate” income will subsequently be declined.

It’s actually quite common to see a mortgage declined on the basis that the income does not match the job title/description, or seems too high for the related position. And if you’re curious where underwriters determine how much a certain occupation should earn, check out Salary.com. That’s where many are instructed to pull the numbers to see if it adds up.

Another “setback” to a stated income loan is that a bank or lender can ask that you fill out an IRS Form 4506-T, which basically authorizes the lender to request your tax returns from the IRS for the previous two years.

Although it’s not common for them to actually look up your returns, it can be enough to deter a would-be “liar” from overstating their income. It’s most common for a lender to pull a 4506 only if you become delinquent on the loan in a short period of time. But if they do pull a 4506 and find that you indeed overstated income, you could be face some steep consequences, so take caution.

Additionally, a mortgage lender will still pull your credit report to determine if you re a sound borrower. Since they re taking more risk by extending financing without verified income, they have to pay close attention to what they can verify.

If you are seeking a stated income mortgage, it s imperative that you have good credit to obtain a favorable mortgage rate. Sure, you might be able to get approved with a 620 score, but you ll pay more as a result.

Stated Income Mortgage Rates Are Higher

If you do choose to state your income, you must pay a premium because you’re putting more uncertainty and risk in the hands of the lender and subsequent buyer of the loan if sold on the secondary market.

For this reason, interest rates on stated income loans are often .25% to .50% higher than a full doc loan. Of course, it depends on all the loan details. It might be possible for someone to state their income and get a lower rate than someone going full doc if they have better credit, and/or a larger down payment.

Conversely, someone with poor credit requesting a reduced doc loan might get a mortgage rate several percentage points higher than the typical, going rate. It can get expensive fast.

Related to that, you may also find that you’ll have to put down a larger down payment or sport a higher credit score to obtain the financing you need when going the stated or asset-verification route.

Again, this becomes an issue of layered risk, and because you chose to state your income, the lender may limit risk in other departments such as credit and down payment.

In closing, after some years of intense credit tightening, there are now plenty of options for those who may have trouble qualifying for a mortgage using traditional income.

However, you ll often pay the price for this convenience in the form of a higher mortgage rate and/or be forced to come to the table with a larger down payment, more reserves, and more scrutiny. So be prepared.


Stated Income Loans, Self-employed Mortgage Without Tax Returns, stated income loans.#Stated #income #loans


What Are Stated Income Mortgage Loans?

A Stated Income Loan is a loan program that does not require borrowers to document their source of income with pay stubs, 1099s, or 1040 tax returns to the lender although they declare it on their application.

So, if you are a self-employed business owner or an independent contractor, you DO NOT have to provide those documents to get loan approval if all other criteria are satisfactory to the lender. No IRS tax returns for personal or business are required.

Borrowers will simply state their income on the loan application and underwriters will review the file based on the borrower’s credit score, assets, bank statements, and occupation type. Some lenders refer to this loan type as a No Income Verification Loan (NIV).

Stated income loans Stated Income Verified Assets Loan: (SIVA ) Borrower approval is based on your credit history, verifiable liquid assets, and of course the income you input on the application. If your income is X amount, then the verified assets should correlate to the income the borrower(s) puts down on the application. As a niche loan (Non-QM), this program is limited to certain states (currently just California), and requires equity ranging from 30% to 40% down for purchases and refinance.

For example, let’s say an owner-occupant applies for this lite doc loan. They can purchase a $625,000 home with 30-percent down or a $1.3M single family residence with 35-percent down, IF approved by underwriting.

Stated income loans Are These Loans Available in My State?

YES – CALIFORNIA This loan will be from a private lender only in major cities such as Los Angeles, Newport Beach, San Diego, Santa Barbara, San Jose, Sacramento, and San Francisco as well as Orange and Riverside counties.

70% financing up to $1.5 million – Primary Residence*

65% financing to $1.5 mil for investment property

Minimum Loan Amount: $417,001

Reserves as low as 6 Months

Self-employed and W2 OK

Cash back refinance up to $300k

No Prepayment Penalty

* depends on the program. Some are 70% to $625,000

Refinance is 65% or less

ALL OTHER STATES – available ONLY for rental properties

Stated income loans

Updated March 2017. Under this program the borrower(s) does not submit IRS form 4506-T to the lender which lets them retrieve a copy of your filed tax returns.

Alternatives to Stated Income

If you are NOT eligible for the program above, see if you qualify for the qualify for the bank statement mortgage program where NO tax returns and NO 4506-T forms are needed.

If your income is low on your 1040’s 2 years ago, but this past year it is higher, see if you qualify for the 1 Year Tax Return where the lender only reviews a copy of your most recent filed tax year. (click here)

Finance your 1-4 unit Investment Property without your job or income disclosed.

Qualify based on income of subject property

(click here and go to “investors” tab)

To offset the lack of availability, there are a few portfolio private lenders and small regional banks that still offer stated loans, but NOT large financial institutions like Bank of America, Wells Fargo or Chase. Please discuss your loan options with a designated NMLS licensed originator or lender.

Stated income loans

(updated March 2017, Contact us for rules)

Requirements for Stated Income Home Loans:

Lenders typically want applicants to have at least a 2 year history of self-employment in the same industry. Self-employed borrowers can prove their job history by obtaining a letter from an accountant or CPA on their company letterhead to get verification. It can be any accountant or CPA as long as they have reviewed your taxes.

Additional ways to prove self-employment are to: Stated income loans

1.) provide two years of business license copies or

2.) confirmation from (3) business associates who have no interest in your business. The income stated on the application is what qualifies you for the loan, so do not underestimate or substantially exceed the income you make. The amount you insert must be typical for your line of work otherwise a red flag will be raised. A federal signed 4506-T tax form may be required by the lender prior to closing (At present, it is NOT required).

Borrowers generally need credit FICO scores above 680

No short sales, foreclosures, bankruptcies, or repossessions

– No unpaid judgments, liens, or collections. (collections of $500 or less are sometimes allowed)

Loan Programs offered on 5 7 year ARMs 30 year fixed. The borrower should have a minimum of 6 to 12 months of the mortgage payment in personal liquid cash reserves on a purchase or refinance for the best rate.

At times, lenders may request you to have 10% to 20% of stated income in Liquid Cash Reserves on large jumbo loans. Reserves can be from checking, savings, CD s, money market accounts,cash, stocks, bonds, IRA s, 401k s, and Keogh accounts.

On cash out refinances, reserves can come from the loan proceeds although the credit score may need to be higher. The other programs (30 year and 15 year fixed) require less reserves.

NOTE: The terms and conditions and availability change frequently on these loans. Currently, stated income loans are being provided by a select few mortgage companies and portfolio lenders in California, New York, New Jersey, and Massachusetts with rates ranging from .50% to 2% higher than conventional rates. It just requires some extra legwork to accomplish your financial goals since it is now an uncommon program so check back often.

To get a rate quote and see what lenders have to offer, try our simple FREE Pre-Qualification process today.

No Income Verification Mortgages Are Intended For Who?

The loan program was originally intended for self-employed professionals such as doctors, lawyers, stock brokers, realtors who have multiple expense write-offs on their tax returns that significantly reduced their gross income although their lifestyle was much higher than their adjusted gross income on their tax returns.

The eligible guidelines are expanded with some lenders for borrowers who receive a salary plus cash that is not documented. A good example would be a restaurant server (waitress, waiter, bartender), caterers, shuttle limo drivers, and similar service jobs. In addition, borrowers who regularly receive monthly rental income from occupants or travelers from a verbal agreement and nothing signed to prove the source would fit into this type of financing.

If you re a neurosurgeon, it would not be a surprise to claim that you make $40k to $50k a month. However, if you re the average neighborhood barbershop charging $10, underwriters will have a hard time believing your claim of raking in $15,000 month after month. The odds against it are very huge for that line of work.

Consequently, a lot of loan applications submitted with incomes deemed to be inflated will not be approved. These are the borrowers who made the term liar loan before 2007 a reality when they were approved.

It s not uncommon to have a loan request rejected when the stated income figure they use does not correlate with the job title or position. Most underwriters ascertain a borrower s normal earnings based on their profession, years of experience, and job location with Salary.com.

Often, investors and people who don t want to show their tax returns inquire about stated income or no doc loans for residential financing but they exist as well on commercial property loans. So, investors can also apply for the program on a 5+ unit property too.

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* NOTE: Loan programs are subject to change without notice. We are not a lender. We simply display popular loan programs that mortgage companies are utilizing in the ALT-A market.

Stated income loans

Find a Commercial Mortgage without income documentation for your cash flow generating property such as an apartment building, office building, and retail properties.

Stated income loans


Stated Income #business #loans #calculator


#stated income loans
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STATED INCOME COMMERCIAL LOANS

800-247-8212 We are a Direct Stated Income Loan Lender. What Is Stated Income?  No Tax Returns No W-2 s 30 Year Fully Amortized No Balloon Easy Qualify .  This can be very useful for the business owner or professional real estate investor,   as currently Banks are very tight with lending on income and investment property.  They not only calculate a properties Debt Service Coverage Ratio but the owner s or buyer s personal Debt To Income Ratio as well.  Needless to say there are many who can t quite qualify for a bank loan with the new regulations and need to refinance or purchase a commercial real estate property.  This type of commercial stated financing easily gives you the opportunity to take advantage of a currently fast paced commercial real estate market and rising property values.  Typical completed transactions take 4 to 5 weeks from application.  Do you want to payoff your SBA Loan?   We ve helped many business owners come out from under the strenuous scrutinization of having and maintaining an SBA loan into a more comfortable 30 year fully amortized commercial loan.

STATED INCOME LOANS = EASY QUALIFYING

A true Commercial Stated Income loan.   The perfect type of loan if you can t provide tax returns for some reason or don t want to provide tax returns because of excessive write-offs that keep you from qualifying at your local commercial bank.  That s fine.  We don t care what your tax returns show No debt to income ratio (DTI) review ever.  Even with a bankruptcy over two years ago, you can still qualify for a stated income mortgage.  This program lets you refinance up to 70% of your appraised commercial property or investment residential s value.

  • Loan amounts from $100,000 to $5,000,000
  • As long as your credit report has a mid-score of FICO 650 ( Equifax ) pull your 3 credit report + scores from Equifax site for a FICO report (score between 600 to 650 contact us anyway, we may be able to create an exception for your property)
  • No more than 2 Mortgage Lates in the past two years
  • No BK within two years
  • Not available in low density or rural areas
  • We provide an uncomplicated loan process from a common sense point of view and fast loan approvals.  Most transactions closing within 30 days of loan application.  Blanket loans are available if needed.

    Start by contacting Allied Commercial Funding today by email or phone 800-247-8212

    LONG TERM AND FULLY AMORTIZING

    Never a balloon payment.  30 years fully amortized over 30 years fixed for 3 (8 year Fixed options Now Available)!   For more information on terms and property types please see our page on Stated Income Loans for Commercial Properties .

    Newly arrived!   Stated Loans Available for single family residence investors of 1 to 4 units.  See our Stated-Income Loans for Investors page for information on terms and property types.

    Stated Loans for Commercial available:  Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota,Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming

    Commercial loans not available in  AK, HI, IL, MI, TN, or VT

     (all terms and conditions quoted above are subject to change at any time without notice)


    Student Loans for Low Income Families. #parent #student #loans


    #low income loans
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    Student Loans for Low Income Families

    Obtaining student loans for low income students and families is possible through both federal and private sources. While your credit and financial status may prevent you from attaining some types of loans, student loans are often available on a need basis. This means your ability to pay for college tuition for yourself, your spouse or your child will determine your loan limits and interest rate rather than your income.

    Stafford Loan Program

    The Stafford Loan Program offers federal student loans to both independent and dependent students. The loans are available at the undergraduate and graduate level, and they are dispersed on a need basis. Independent students, those not getting support from a family member, will qualify for higher loan limits. Also, many people, usually the neediest students, qualify for a subsidy on their loan. The subsidy is a governmental condition that will outright pay for a portion of their tuition, without assuming an interest rate on the loan. Even unsubsidized loans have low interest rates. You will have to prove you are creditworthy for this loan, but your creditworthiness will depend more on your debt to asset ratio than on your actual income as an individual or a family.

    PLUS Loan Program

    The PLUS Loan program is an option for parents who are borrowing on behalf of a child to pay for tuition or other education expenses, such as books and room and board. The PLUS loan program also assists students in directly paying for a graduate education. PLUS loans are not entirely need based, they also rely largely on a loan application proving the borrower is worthy of the credit extension. If you have good credit, you will likely be able to take out a PLUS loan on behalf of your child. The one important thing to remember is these loans mature much quicker than other types of loans. While loans to a student generally provide a grace period and deferral options in case the student does not immediately have a salary, loans to parents often do not have this protection. Parents will be expected to start repaying the loans immediately, sometimes before a student even graduates college.

    Federal options are not the only choices for low income families seeking student loans. In fact, they may not always be the best options. Private loans are traditionally more flexible. For example, you can only consolidate federal loans with other federal loans, but private loans can be refinanced and consolidated in many different ways. Another key benefit is private loans typically only require one application. Federal loans will require a student to re-apply each semester or each year. If you have a low income, you may still secure a private loan if your credit is good. You can secure the loan against collateral, like a car, in order to reduce the interest rate. You may even be able to get a better rate than on your federal loan if you are willing to secure the private loan.


    Income calculator #simple #interest #loan #calculator


    #calculate car loan
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    Your Gross

    You may be qualified for a new or used car loan based on your income.

    Click Get Approved to apply in just 60 seconds!

    Our Monthly Income Calculator calculates your gross income before taxes in order to see if you qualify for a car loan. Wheather you get paid hourly or salary our income calculator will help you determine the exact Monthly Gross Income before taxes.

    Now that you have an estimate of what’s you gross monthly income, the next step is to Apply for a Car Loan using our fast and easy application. Within 48 hours, you can meet with one of our loan advisors and find out exactly what you can afford!

    Before you try to obtain a loan from Carloan.com, it is important for you to figure out if you will be able to afford a car loan. In order to figure out how much you can afford when looking for a car you can take advantage of the income calculator that we provide our customers. How much money you make normally affects the type of car that you get and the type of loan that you get. You need to find out how much you can borrow as soon as possible so you can look for the right car.

    Finding Out Your Gross Monthly Income

    You need to find out your gross income in order to obtain a loan. This means that you need to go over all of your income sources and add all of them up. This normally includes any money that you earn from self-employment, job wages, and alimony. You can use our monthly income calculator to enter all the details of your income. After you have entered the data, you will be able to find out your gross income.

    Using Our Gross Income Calculator

    In order to use our income calculator you will first need to choose the hourly option or the overall salary option. If you have chosen the hourly option, you will need to enter how many hours per week you work. This should include your overtime hours as well. Next, you will need to enter your hourly rate. After you have done this, our gross income calculator will provide you with your gross monthly income. If you have chosen the salary option, you will first need to supply the monthly income calculator with information regarding how often you are paid. This may be weekly, bi-weekly, or twice a month. After you have given us information about how often you are paid, you will need to let us know how much your paycheck normally is before taxes. After the calculator gives you your monthly income, you can multiply this number by twelve. This will give you your annual income.

    Now that you know how much money you make each month, you will need to analyze your budget. You should list all of your monthly expenses. Remember not to include your loan. Your expenses may include insurance, property taxes, rent, and groceries. You should also remember to include future costs concerning your vehicle. This can include future car repairs and gas money. After you have calculated how much money you may be spending each month, you will need to subtract this number from your monthly income. What is left is the amount of money that you have left over to put towards the car loan. Our monthly income calculator can help you figure out your overall gross income before your taxes are taken out. Knowing how much money you make each month can also help you figure out if you can qualify for a car loan from our network of lenders.


    Low Income Loans Australia – Low Income Earner Help #loans #with #monthly #payments


    #low income loans
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    Low Income Loans Australia

    Learn about the different low income loan options and benefits available to borrowers who are finding it hard to qualify for a loan due to income thresholds. As many lenders have tightened their borrowing criteria over the last couple of years, qualifying for a loan has become increasingly difficult. There are alternatives to mainstream and payday loans.

    At Low Income Loans Australia we understand that there are many different circumstances in which a person may have financial issues – minimal opportunities in the area of residence, injury, divorce, retired, etc.

    Regardless of your background, we try to provide details on options and benefits available for low income earners who are in need of cash or some form of financial assistance.

    Common borrowing situations may include:

    • Unexpected expenses
    • Funds for essential personal/household goods
    • Possible debt consolidation
    • Medical dental expenses
    • Home or vehicle repair
    • Holiday/entertainment, etc

    Stated Income Loans #bank #loans #for #bad #credit


    #stated income loans
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    Stated Income Loans

    Stated income loans allow borrowers to simply state their monthly income on a mortgage application instead of verifying the actual amount by furnishing pay stubs or tax returns.

    This simplified method was originally intended for self-employed borrowers with complicated tax schedules, but has recently become more widespread, often because borrowers find it that much easier to qualify for a loan by stating their income.

    For that reason, stated income loans are also occasionally referred to as “liar’s loans” because it is suspected that many borrowers fudge the numbers in order to qualify for a home loan. Back to that in a minute.

    So how does a stated income loan work?

    Well it’s pretty straightforward really, though it does depend on documentation type.

    A full documentation loan requires that you verify income with tax returns or pay stubs and also verify assets. That’s just listed here for comparison sake; it’s not a stated income loan.

    A SIVA loan. or stated income/verified asset loan, allows you to state your monthly gross income on the loan application and requires you to verify your assets by furnishing bank statements or a similar asset document .

    A SISA loan. or state income/stated asset loan, allows you to state both your monthly gross income and your assets. So in this case, both items are simply stated, and the bank or lender will not ask you to verify the information.

    Employment Verified

    In all of the above cases however, the bank or lender will verify your employment by calling your employer, or requesting a CPA letter if you are self-employed. This is important because your job title will determine what you can state in the way of income.

    If you’re a doctor, it’d be normal to state that you make $50,000 a month. But if you’re a kindergarten teacher, underwriters won’t believe that you’re making $10,000 a month. It’s just not likely, nor does it make sense for the position. And for this reason, many loans that “overstate” income will subsequently be declined.

    It’s actually quite common to see a mortgage declined on the basis that the income does not match the job title/description, or seems too high for the related position. And if you’re curious where underwriters determine how much a certain occupation should earn, check out Salary.com. That’s where many are instructed to pull the numbers to see if it adds up.

    Another “setback” to a stated income loan is that a bank or lender can ask that you fill out an IRS Form 4506, which basically authorizes the lender to request IRS verification of your tax returns for the previous two years.

    Although it’s not common for them to actually look up your returns, it can be enough to deter a would-be “liar” from overstating their income. It’s most common for a lender to pull a 4506 only if you become delinquent on the loan in a short period of time. But if they do pull a 4506 and find that you indeed overstated income, you could be charged with fraud, so take caution.

    Stated Income = Higher Interest Rate

    If you do choose to state your income, you must pay a premium because you’re putting more uncertainty and risk in the hands of the lender and subsequent buyer of the loan if sold on the secondary market. For this reason, interest rates on stated income loans are often .25% to .50% higher than a full doc loan.

    Related to that, you may also find that you’ll have to put down a larger down payment or sport a higher credit score to obtain the financing you need. Again, this becomes an issue of layered risk, and because you chose to state your income, the lender may limit risk in other departments such as credit and down payment.

    In closing, it’s probably safe to say that stated income loans are becoming a lot more restricted because of recent credit tightening worldwide. You may find that the option is becoming less prevalent, forcing many borrowers to provide full documentation or come to the table with a larger down payment.