Has anyone heard of such income (no income doc loans) are completely gone?

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I heard that lenders have stopped lending income reported in its entirety. Does this mean that everyone must provide tax returns, pay stubs and w2 for home loans and refinancing of eligible purchases? How many of you can with what you qualify for refiance or buy a home? Everyone will have a total debt (minimum monthly payment (for credit report), mortgage payment of property taxes and homeowner’s insurance) vs. operating ratio of 45% or less? Suppose you make $ 3500 per month you can afford to buy a house, pay taxes and insurance on that, pay your car payment, credit cards or student loans and remain in the month $ 1,500 total payments, so you eligible? Does anyone think it’s realistic?

5 Comments
  1. Reply
    DAVE
    April 30, 2011 at 1:20 am

    I have heard of it but i have not seen it. I can offer up to 95% stated loans. The only stated loan I know that is gone is the 100% stated loan.

  2. Reply
    Gem
    April 30, 2011 at 2:19 am

    This is the way things used to work before greedy mortgage brokers and banks changed the rules.

    People used to pay 10%+ interest rates, 20 year financing with a minimum of 20% down, and were still able to buy.

    Granted, prices have a way to fall before we see that again.

    But yes, the days of easy money are over and done with. The banks bankrupted many buyers, bankrupted their investors and our now fighting bankruptcy themselves.

    If not for the greed, prices would NEVER have shot up as high and as quickly as they did.

    Times are changing.

    I saved for 5 years to buy my first house. It can be done if you want it bad enough.

  3. Reply
    Lisa L
    April 30, 2011 at 2:59 am

    Gem, you can put some of that blame on the home buyers too. They wanted more than they could afford. Do you really think a bank or mortgage company wants the house back? Why would anyone have to do a stated income loan unless they are lying? They are either lying to the mortgage company or lying to the IRS.

  4. Reply
    engineer50
    April 30, 2011 at 3:53 am

    Stated loans should be outlawed, regardless of what mortgage brokers say. If you can’t demonstrate to a lender that you can afford the loan, you shouldn’t get it.

  5. Reply
    tianaramal
    April 30, 2011 at 4:10 am

    I basically got a stated no-doc loan from Countrywide about a month ago. My credit is 780 and I am self employed. My rate was 5.875% with .75 points and 5% down. I have one loan and pay tax advantage mortgage insurance which bumped my rate up to 6.375%. Countrywide is a great bank for these loans the loan was called “Fast and Easy”.

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