Low Documentation Verification Loans Still Available!
Posted By tsauthor on November 11, 2009
The last year and a half or so has seen a drastic chain of events unfold in the New Jersey reverse mortgage industry with the collapse of hundreds if not thousands of banks and the elimination of many of the so-called ?exotic? products.
When the dust finally settled only the solid have remained willing and able to lend to qualified clients. We are proud to be among those standing tall and offering the very top of what is available today for the clients. Along with standard New Jersey mortgage broker that we have available, we are among the few remaining mortgage companies that can offer No Income Verification notes to our highly qualified New York borrowers.
What distinguishes ?No Income Verification? from ?Stated Income? loans?
The answer is that true ?No Income? allows for the verification of a home buyer’s job while allowing the income section of the application to remain blank. A ?Stated Income? note on the other hand, requires a home owner to ?state? an income to be used on the application form, but not be checked. It must however, coincide for employment that the home owner’s is in. In both cases, fund verification is needed and must be significant enough to warrant approval of the loan. There is no set calculation as only common sense will prevail. It is important to note that these products are for owner occupied properties ONLY and the person’s MUST be self-employed or retired.
What is the benefit of going with a ?No Income? or ?Stated Income? loan?
With the changes that have happened in the industry there is no longer a higher level of automated underwriting approval that allows for income to be approved as stated therefore, the only selections available for the self-employed or retired borrower are those previously mentioned. Stated Income loans are allowed up to 70% loan to value (LTV) while No Income loans are limited to 60% LTV.
What make these products excellent as well is that the interest rates are most identical to Fannie Mae and Freddie Mac income verified mortgages. The add-on to the interest rate is .375% for No documentation and .25% for Stated Income loans. To be more specific a 30 year fixed rate as of this blog posting would be 5.50% up to $417K for No Income and 5.375% for Stated Income. These choices are available for our 5/1, 7/1, 10/1 ARMS as well as our 10, 15 and 40 year fixed.
If you have been having trouble documenting your income with you normal mortgage company then a no income documentation loan may be just what you have been hoping for.
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