Can somene with good or excellent credit score qualify for stated income loan?

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Yes, that’s my question and that’s what my morgage broker or consultant said to us. we are two people looking forward to buying home valued from 200k to 240k.

I couldn’t verify my income on full doc loan though my other relative can show full doc and her income wasn’t enough to qualify for mortgage.

Broker have given sample GFE on stated income at 5% down and interest rate at about 6%..

We both have our credit score from 740 to 775.

We asked if our interest rate would be high cos of stated income and he said there is no adjustment on interest rate.

Now we qualify for stated income cos of our excellent credit score?

Any nagative effect on our life in future cos of stated income home loan, Idon’t mean not afford to pay mortgage but any other nagative things for getting stated income?

We haven’t gone to bank or other lending companies for prequalification cos we think mortgage consultants is the best way to go and not get many inquiry report. is this right?
Also, with stated income loan, we can’t get any governmental discount or grant program right?

MY lender emailed me few days ago that saying interest rate has dropped below 6% and asked us it’s good time to lock in.

But we havnn’t decided on a home yet.
If we move out of apartment in end of May 08, when is best time to lock in rate and get everything done with closings and make it the end of home buying?

Any things we should know when filing our income tax? Should wait till we get done with home purchase?


  1. Reply
    April 30, 2011 at 12:27 am

    Yes – stated loans are still narrowly available in the market. However, stated loans are not for people to lie about their incomes – either to apply for the loan or to hide income from the IRS. Either of these is illegal, unethical, and can lead to problems down the road.

    Stated income loans are for people who truely have sources of income (hopefully properly reported to the IRS), but just are not ableto be included in the normal lending guidelines. One example may be that a person earns commissions in a job, but have not established the full history required yet on a full doc loan. Another might be that the borrower gets a family stipend every month – Grandma gives everyone $ 500 every month as a gift. (Lender doesn’t count this). You babysit the neighbors kids after school but have no license, etc…

  2. Reply
    April 30, 2011 at 12:51 am

    It will depend on several factors. Here do you live, how much are you putting down? Do you have any other assets you can show? There’s not on simple answer toyour question. Yes, they are available in the right situation, but it’s hard to qualify and getting harder. I’m also a bit skeptical of that interest rate for a stated loan. How much are you planning to put down on the home?

    Filing your taxes for 2007 will not be affected by a home purchase in 2008.

    Government loan programs are all full doc only. I have extensinve experience with FHA mortgages, and they do not do stated loans. I’m not sure about all the locally sponsored discount programs for home buyers.

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