When the dust finally settled only the most persistent have remained ready and able to lend to qualified borrows. We are proud to be among those standing tall and offering the very top of what is available today for the consumer. Along with standard New Jersey fha rates that we have available, we are among the few remaining lending institutions that can offer Stated Income Verification notes to our highly qualified Pennsylvania borrowers.
What is the difference between “No Income Verification” from “Stated Income” loans?
The answer is that real “No Income” allows for the verification of a borrower’s employment while allowing the income section of the application to remain empty. A “Stated Income” loan on the other hand, requires a home owner to “state” an income to be used on the 1003 form, but not be checked. It must however, jive for employment that the home buyer’s is in. In both cases, asset verification is needed and must be large enough to warrant approval of the loan. There is no set calculation as only common sense will prevail. It is important to note that these products are for owner occupied properties ONLY and the home buyer’s MUST be self-employed or retired.
What is the benefit of going with a “No Income” or “Stated Income” loan?
With the changes that have happened in the industry there is not a higher level of automated underwriting approval that allows for income to be approved as stated therefore, the only selections available for the self-employed or retired borrower are those previously mentioned. Stated Income loans are allowed up to 70% loan to value (LTV) while No Income loans are limited to 60% LTV.
What make these products desired as well is that the interest rates are quite similar to Fannie Mae and Freddie Mac full verified mortgages. The add-on to the interest rate is .375% for No Income and .25% for Stated Income mortgages. To be more specific a 30 year fixed rate as of this blog posting would be 5.50% up to $417K for No Income and 5.375% for Stated Income. These options are available for our 5/1, 7/1, 10/1 ARMS as well as our 10, 15 and 40 year fixed.
If you have been having challenges documenting your income with you normal lender then a no income documentation program may be just what you have been waiting for.
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