Self employed Stated income loans?

[ladera1_IHB]

I know that these stated loans are sparse now, but how long do you think it will take banks to offer these programs again? And if not, what happens to all these self employed people who will need to refinance or purchase other homes in the future?

 

[Nude_IHB]

I know that these stated loans are sparse now, but how long do you think it will take banks to offer these programs again? And if not, what happens to all these self employed people who will need to refinance or purchase other homes in the future?

They will have to qualify with their tax returns as proof of income, or pay some exobitant interest rate, or have a huge amount for a down payment, or some combination of all three. In my opinion, "Stated Income" loans, as they were used over the last few years, are dead. If they reoccur in the future they will most likely be between a lender and a borrower who have a long history together and the loan officer has personal knowledge of the situation. The business model that allowed the widespread use of these loans is busted and won't be repeated for a generation, at least.

 

[freedomCM_IHB]

i'm guessing same as it used to be. they will pay higher rates and need better financials.

check out the broker site. sometimes people are asking to place stated loans, and you can see what is up:

http://forum.brokeroutpost.com/loans/forum/forum.asp?FORUM_ID=2&sortfield=lastpost&sortorder=desc&whichpage=1

 

[freedomCM_IHB]

jinx, owe me a coke!

 

[stepping_up_IHB]

Umm, maybe declare all of their income and deduct only their real expenses? I'm self employed and have fully documented my income for two mortgages. It's not that hard. You can't avoid taxes while expecting to get a loan for income that you don't supposedly have. You either have the income and pay the taxes or you don't have the income. It's not a have your cake and eat it too.