bank rates credit cards insurance finance calculators

Stated-income loans making a comeback

Mortgage brokers in at least some parts of the country tell us that lenders are starting to offer stated-income loans again.

These are the kind of mortgages that were for small business owners and self-employed professionals who can’t document their income with W-2 forms as most types of mortgages require.

Stated-income loansProblems arose during the real estate boom when lenders started pushing no-doc loans with consumer-pleasing features such as no down payments, and big fees for mortgage brokers.

The number of applications for stated-income loans soared as brokers began signing clients up for no-doc loans even if they had regular jobs and could fully document their income with W-2 forms.

Why?

It allowed them to inflate their client’s income, and that was the only way those clients could qualify for a loan that was big enough to buy the house they wanted.

When hundreds of thousands of these “liar loans” began to default in 2007, lenders discontinued their stated-income mortgage programs.

Two years later some small to medium-sized banks are tiptoeing back into the market.

Not everywhere. Mortgage brokers tell us that stated-income loans are still virtually impossible to find in California, where much of the abuse occurred.

Some of the stated-income loans we’re hearing about are pretty awful.

One Michigan bank is offering a five-year balloon mortgage at interest rates from 8.95% to 14.95% depending on your credit score, with a 25% down payment (or 25% equity for a refinancing).

But brokers on the East Coast told us about stated-income loans with much better terms:

  • Emigrant Savings Bank of New York is charging an initial rate of about 8% for a 3/1 adjustable-rate mortgage and 9% for a 30-year fixed rate loan. Borrowers must have credit scores of 700 or above and 30% down payments for a purchase and 35% equity for a refinancing.
  • Investors Savings Bank based in Short Hills, N.J., is charging just a quarter-point above the interest rate for fully-documented loans for borrowers with a minimum credit score of 700, a 40% down payment, four months of cash reserves and proof of assets.
  • Hudson City Savings Bank, based in Paramus, N.J., is charging three-quarters of a point above the full-doc loan rate for borrowers with a well-established credit history and a down payment (or equity) of at least 40%.
Comments (69)
1 Star2 Stars3 Stars4 Stars5 Stars (8 votes, average: 4.00 out of 5)
Loading...
69 Existing Comments
  1. Philip Bielski said:
    on June 28th at 01:56 am

    As wholesale lenders we do have a stated program, though its only available in 8 states; AR, CA,CO, HI, IN, MT, SC, and WA. Also, this program requires semi-documentation with verification of W2s but, no tax returns. The interest rates and terms can vary, yet currently about 6.85-9.75% for 3-Year ARM with a max. loan amount at $625K or the county loan limit. The 80% LTV is attractive for o/o and LTV of 75% for n/o/o with FICO 700 or higher, the loan can be possible with 620 FICO and 59% LTV.

  2. Keith Jones said:
    on June 29th at 06:12 pm

    I would like to have more information on the stated loan program your company is offering. Please e-mail me with your number or web address. kajones111@ymail.com

  3. Emily H. said:
    on June 30th at 02:45 pm

    Excuse me, Phil. But the definition of a no-doc or low-doc loan is that they don’t require W2s. A loan like yours is of no use to all of us who are self-employed and don’t have W2s. We desperately need these loans back. And with terms we can afford.

  4. Matt Vincent said:
    on June 30th at 09:30 pm

    Please if anyone can let me know what bank is writing stated loans in michigan as you mention in this article. Thank you.

  5. CrankySaver said:
    on July 1st at 01:55 pm

    First National Bank of America in Lansing is the Michigan bank offering that less than stellar stated-income loan in the post. The best thing to do is contact several mortgage brokers in your area and ask what they have available. That’s the way most of these loans will get made.

  6. Lisa Jordan said:
    on July 7th at 03:21 pm

    Is anyone offering these loans in Arizona?

  7. sam pignato said:
    on July 12th at 02:13 pm

    I am writin to inform the insanity of irrational no risk taking by lenders now. But instead will just say that if a person has 12000000 in cash and high 700 credit scores and wants a rental investment property which costs 232000 that psitive cash flows 600$ after 40% down, would you give that loan as low risk?? I had that turned down go me !!! I removed my cash from the bank santa barbara bank and trust. I was really borrowing my own money they desperately need. Crazy. Stated income is not abused by smart investors who know their money management.

  8. sam pignato said:
    on July 12th at 02:15 pm

    CASH ON HAND IS 1200000

  9. Greg said:
    on July 26th at 10:48 pm

    Philip, what is the name of your wholesale bank? I have clients for you. please email me gsandler AT nhlservice.com

  10. sean gunning said:
    on July 28th at 06:56 pm

    Philip,
    Please contact me asap. I am looking to place a stated loan at 70% LTV on a primary residence with 700+ ficos. Need a rate and term refi at a decent rate to stop the bleeding on a neg am. Client does not qualify for loan mod – cur loan not owned by Freddy or Fanny. Combo of BFS (with W2s), fixed income (pensions and SSI) and + cashflow rental income. Thanks.

  11. Jeff Hunt said:
    on August 7th at 11:03 am

    Phil I need more info on the stated income I think I could send some business your way.jeff@jeffhuntrealty.com

  12. Steve Nearing said:
    on August 7th at 11:25 am

    Philip,
    Please contact me directly at 678-507-3095 or 1-866-667-8669 x 3095 or email info to snearing@mortgage-plus.com. I have several loans that meet your semi-documentation criteria, and many of the other L.O’s in my office may also have clients in need of this program.

  13. KC said:
    on August 17th at 07:44 am

    Philip, please send me your info, Our company has a few clients that meet your guidlines. mbz123@msn.com
    Thank you

  14. Daniel said:
    on August 21st at 05:55 am

    Im in the same boat as Sam, I have 170k in cash with cahse bank. I want to buy an investment property as a fist time home buyer of around 200k with 60k down. My credit score is above 700 and I cant get any financing for anything. Ofcourse I’m self employed and dont have w2’s. I report way to many deductions to bring down my taxable income and as you all now they base the figures of net incomke for self employed which kills me. Anyways I have great credit, great reserves and strong downpayment, if any one can help me get this loan for a purchase in California please advise. Thanks.

    FYI: Im also a realtor and have many clients / investors in the same boat

  15. Melissa said:
    on August 23rd at 05:38 pm

    I find this whole no stated income loan situation ridiculous! Many of us self-employed professionals have major tax deductions that are legitimate and cannot qualify now because we decided to upgrade our office equipment last year or we decided to make a big marketing push at a big expense; but, this does not mean that this year we could not keep more of our income so that we can make the required mortgage payments! This is really absurd and must change! Why are we paying for the abuse by other irresponsible people who probably had bad credit and planned on walking away from their too-expensive homes when the payments ballooned?! I have excellent credit and gross six figures, and yet, I cannot qualify for a mortgage right now because I decided to reinvest in my law practice last year. How absurd! This discourages people from becoming entrepreneurs, which is one of the mainstays of America–we forge the way to make the American Dream come true, and now, we cannot even get mortgages!

  16. odila said:
    on August 29th at 03:32 pm

    Philip, i’m a REALTOR in CA email me your info I might have some business for you.

  17. odila said:
    on August 29th at 03:33 pm

    for philip email odilaenciso@sbcglobal.net

  18. marc said:
    on September 6th at 12:01 am

    Philip: I am also interested in the type of loan you mentioned above, could you please email me with more details at mmbond@hotmail.com. Thanks!

  19. doug said:
    on September 14th at 09:08 am

    Like many self-employed people, I am finding it impossible to get a loan for a 2nd home. I just contacted First National Bank of America in MIchigan, and turns out that their “stated income loan” is a LIE: they require income tax verification, just like everyone else. They still call it a stated income loan though.

  20. steve said:
    on September 24th at 04:21 am

    I have access to multiple Stated Income Loans up to 75% in FLORIDA ONLY!

    I am also willing to Co-Broker on these loans, IF they are over $150,000

    Co Broker Fee can ONLY be paid to a Lic. Lender or Broker Bus. Lic. in FL.
    Contact me at steve@pro-option.com

  21. Vartan said:
    on October 13th at 02:00 pm

    Hi Phillip,I do hard money here in CA.I’m really interested on your programs. Can you please send me your info? Thanks vartan.davtyan@calcapadvisors.com

  22. Alan Dishman said:
    on October 19th at 08:38 am

    I’d also like your contact info Phil…question, Why W2’s and why not 12 to 24 months bank statements. bank statement would include W2 income and self-employed side job income

  23. Anthony said:
    on October 19th at 01:53 pm

    Does anyone know who’s doing stated loans in FLA!!!!

  24. Molly said:
    on November 4th at 02:04 pm

    Both my husband and I are self employed and make a good amount of money. We need to refi to get out of our interest only loan.
    Is there anyone out there that will still do a stated income loan in Minnesota?

  25. JJ said:
    on November 7th at 03:02 am

    I have a home business thats an S. Corp and and need to refinance my home in KS. I have ok credit and 20000 in the bank. My 1st is 63k at 8% and my 2nd is 20k w/16%. Does anyone know where I can go?

  26. Gail Bach said:
    on November 9th at 09:27 am

    Hello – If you’re for real with no doc loans, please contact us asap! Thank you.

  27. Steven Louis Carter said:
    on November 10th at 11:20 am

    I have stated income self employ loan available in California–mostly for la,orange, ventura, and san diego counties. Not open to the real estate industry workers. I also have a similiar program for all of California but you need loan amount at least 500K to 1.5 million, this one with cash-out. My wage earner programs covers all of California. Commission one source is well come and the cash employed–dancers etc.

  28. Zoran Bozovic said:
    on November 12th at 01:07 pm

    We have great SIVA products in numberous different states. Please feel free to contact me at 630-532-3617.

  29. B Swift said:
    on November 16th at 01:21 pm

    Steven Louis Carter, please let me know about stated income in San Francisco.

  30. R Nocera said:
    on November 24th at 10:33 am

    Steven Carter – how do we contact you? Phone? Website?

  31. D Solomon said:
    on November 25th at 02:05 pm

    I am in the state of Maryland, and I have a 750 middle FICO score, 20K in cash in the bank, nearly 200k in an IRA, equity in assets totaling approximately 700k, and business bank statement showing strong monthly cash flow. I own 5 completely renovated, fully occupied (NOO), single family homes FREE and CLEAR, and I would like to do stated income or limited doc, refinances on 3 of them. The LTV would be approximately 60-70% on each. Is there anyone in the country who can do these loans (i.e traditional mortgage companies, banks, private investors, etc.)? If so, please call me at 240-461-3469.

  32. michael said:
    on December 9th at 01:08 pm

    if anyone has a stated program in CA give me a call or email
    michael@fundingusa.com 949-428-7000 ext 219

  33. michael said:
    on December 9th at 01:11 pm

    anyone has a stated program and will work with brokers send me an email
    michael@fundingusa.com

  34. Jessica said:
    on December 10th at 06:30 pm

    I’m interested in stated program loan which work for CA. Anyone has the stated program and will work with brokers send me an email jtongrealty-pro@yahoo.com or call me at 408-891-1590

  35. Mike Harris said:
    on December 13th at 11:34 am

    I would like stated income loan information in California. Please send info if you offer these programs. http://www.mralohamike@aol.com

    Thank’s

  36. larry said:
    on December 13th at 12:58 pm

    looking for a no income loan/mortgage, have @ 800 credit score.
    3 million in assets, lost money and have no income to show.
    bank said no to no income, can anyone help or recommend
    a private lender or a fair lending institution.
    e-mail @ http://www.lamadou@aol.com put $$$$$ in subject

  37. Philip Bielski said:
    on December 15th at 09:22 pm

    Here is my email: cgpbielski@gmail.com

  38. Rich said:
    on December 28th at 03:41 pm

    I am self-employed and need a stated income loan or line of credit in Rhode Island with a reasonable interest rate. My credit score is 813. I own a condo that’s worth $90,000.00 and is paid off. Can anyone point me in the right direction?

  39. Hans said:
    on December 29th at 04:34 pm

    Please let me know if anyone know any wholesale lender or retail bank still provides stated income or no income loan in state of TEXAS ssfundinginc@gmail.com or 972-458-8800

  40. GlennG said:
    on December 29th at 04:45 pm

    Also Very Interested in Stated Programs, SIVAs or NoDoc loans in CA. I have a ton of clients who are self employed, great credit, with tons of equity who cannot get financing due to savvy tax write offs. Please contact me with any information about such programs. gggamut@gmail.com or 949-870-9047. Thanks!

  41. Chris B said:
    on January 4th at 08:41 am

    Hello, looking for a 50K loan on a single family home investment property, with rent revenue of $1250/month on yearly lease. House is paid off in full; no current mortgage. 725+ credit score. 40% (or less) loan to value. No doc loan; self-employed. Looking to consolidate small debt. Fort Lauderdale Florida. Please contact me at info@tropicallandventures.com

  42. Carlos said:
    on January 5th at 11:49 pm

    I also need a stated income/no doc loan here in CA. My FICO is more than 800. Contact me at barringtonmanor@ca.rr.com.

  43. JUAN said:
    on January 12th at 03:50 pm

    I also need a stated income/no doc loan here in CA.Florida,Nevada ,Arizona My FICO is more than 800. Contact me at

  44. Les said:
    on January 14th at 01:32 pm

    Are there any lenders doing these type of loans in VA or NC, if so, please do tell.

  45. JUAN said:
    on January 30th at 05:06 pm

    Juan Carlos
    I’m interested in stated program loan which work for CA.fl.NY.NV Anyone has the stated program and will work with brokers send me an jcvill@comcast.net call me at 925-570-8279

  46. Louis said:
    on February 22nd at 04:16 pm

    I my a mortgage broker looking for stated loans programs in CA. Please feel to contact me. lblending@gmail.com

  47. scguy80 said:
    on February 27th at 06:20 pm

    I dont know if anyone else has received a response but I am figuring its worth a shot, I am looking for a stated income verified asset loan program if any one knows about such program please email me.

    albert@inhomerealty.com

  48. ERIC said:
    on March 5th at 01:24 am

    HI everyone,

    I have access to Stated Income loans. I am an AE with a Direct Lender and have access to Private Banks and Private Hedge Funds that offer good rates starting at 4.75% on a 3 Year Fixed.
    we work with Brokers as well: vonepsloans@aol.com

  49. Rick Roberts said:
    on March 14th at 12:53 pm

    We offer all types of loan worldwide at 6.8%, Email: {to.rickroberts@gmail.com} for application.Our loans are well insured for maximum security is our priority.

Trackbacks

  1. Home Sales Decline Unexpectedly