are there any mortgage lenders out there that have “stated disability” programs?

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i am mortgage loan officer and have a client who needs to take out a loan/refinance for debt consolidation and home improvements. he only owes a little over $ 20,000.00 on his home and it appraised at $ 220,000.00. he wants to borrow $ 100,000.00, so there would still be $ 120,000.00 of equity left. his credit is poor, thus the need for debt consolidation. and he is disabled with a minimal monthly disabilty check. ofcourse, his wife is on title aswell, but her credit is worse, but she does have a monthly income of a very modest amount. the fact that he recieves disability does show up on his credit report, however, the dollar amount does not. what can be done for this family? are there any mortgage lenders out there that have “stated disability” a program? please respond if you are a lender that can help,or have information on the subject that could help. thank you so much.

5 Comments
  1. Reply
    David K
    February 13, 2011 at 1:12 am

    Jmac Lending
    Eric Nguyen
    949-310-1288

  2. Reply
    Mortgage Man
    February 13, 2011 at 1:50 am

    I don’t think there is a product for stated fixed income. What is the age of the customer? If he is 62 or older you may want to look at a reverse mortgage. Can he use his bank statements (6, 12, or 24 mo) as full doc or a reduced doc product. I really would need more information to specify a product, but generally speaking these may be the options available.

  3. Reply
    SUNYScott
    February 13, 2011 at 2:46 am

    I believe that the disabled are a protected class, which means lending decisions cannot be based on this information, nor race, religion, sex, etc. etc. Therefore, I would not expect to see a “Disability Program” any more than I’d expect to see a “Woman Only Loan”.

    That said, I’m sure that people collecting social security or disability can use that income (as long as its expected to continue) to qualify for a mortage. You might need to read the various guidelines for the major lenders and see if they discuss disability income…

    I also believe that any documentation level from stated income to no doc should allow for your borrower to simply say they have some amount of income, and it be good enough.

  4. Reply
    lendermark1
    February 13, 2011 at 3:12 am

    stated fixed income = fraud. as a loan officer you should know better or get better training. No lender in their right mind would do such a loan.

  5. Reply
    Nicholas S
    February 13, 2011 at 3:26 am

    yes there are!!!! i am a broker in New York if you like to email me. and as for it being fraud it is not people should say nothing if they dont know. there are banks that will accept stated disability

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