I would appreciate it if anyone knows anything about the old stated income, stated asset loans coming back available soon? I read something about it a few months age and have not heard anything since.
I wouldn’t hold my breath on that one. As long as the foreclosure rates stay high, I think you will see the lenders being VERY conservative.
It is now law that you must prove your income and ability to repay the loan which is just part of the reason that we are in this mess…to many loans being made that shouldnt have been made as there was no way the borrower could have repaid the loan. Dare I say that we may never see these types of loans…at least not in my lifetime, but what the heck…I’m old so ya never know?
My personal take on it is this, if there is a reason that a person cannot legitimately show their income that it would take to get and support the loan, then is that a loan that really should be made? Myself I say no.
Rastus,
I agree with you MOSTLY. In my opinion the ONLY reason someone should be able to go stated income is because they are self employed. Nobody should ever be able to go Stated Asset. You either have the money or you don’t. There should never be a reason for stating it.
I think as professionals we truly want to see the customer be able to get the loan that they want and need. There is no pleasure in this business derived from a customer who ends up having a financially difficult time and eventually defaults and gets foreclosed on.
The new laws prevent this type of loan from happening as you now must show the ability via your income to repay the loan. In reality this part of the law is truly is a make sense kind of deal. Will some people falll into the cracks, meaning that they can afford the loan, but either dont want to document the income, or just cant? Yes they will, but in the end maybe they should consider the cause of why they cant document this, and then adjust things so they can play within the loan guidelines?
I’m the biggest proponent of creative thinking and approaches to loans and solving the problems that a customer might encounter while they are trying to get the loan. However there are times when we shouldnt creatively try to get around certain guidelines, and this just might be one of them.
OK somebody kick me off this box…
Yet the gov’t in some ways is bring back subprime lending with the HomePath Program to move REOs that need work. 3.5% and gifted is the wrong approach still.
Hey was wantting to know where to go to get more information on the home path program And more information where is the best place to find reo properties
Stated Income loans is a product of the past. I mean, seriously stop and think about what it is for a second. It’s an institution lending you money (potentially a large amount) just because you say that you make a certain amount of money.
Now, the proof is in the pudding ---- or on your tax returns.
There’s no way these types of loans are coming. Back. I believe they were made illegal under the Dodd-Frank law.