The previous year and a half or so has seen a massive chain of events happen in the New Jersey conforming loan industry with the fall of hundreds if not thousands of loan companies and the elimination of many of the so-called “exotic” products.
When the dust finally settled only the strong have remained willing and able to lend to qualified home owners. We are proud to be among those standing tall and offering the very top of what is available today for the consumer. Along with standard New Jersey cash out that we have available, we are among the few remaining loan companies that can offer Stated Income Verification mortgages to our highly qualified New Jersey borrowers.
What sets apart “No Income Verification”
The answer is that real “No Income” allows for the verification of a client's job while allowing the income section of the blank. A “Stated Income” loan on the other hand, requires a home owner to “state” an income to be used on the 1003 form, but not be checked. It must however, jive for job that the person's is in. In both cases, monetary verification is a must and must be obvious 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 client's MUST be self-employed or retired.
What is the benefit of going with a “No Income” or “Stated Income” loan (http://www.firstlendersmortgage.com)?
With the changes that have rolled out in the industry there is no longer a higher level of automated underwriting approval that allows for income to be received as stated therefore, the only choices 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 outstanding as well is that the interest rates are most identical to Fannie Mae and Freddie Mac income verified loans. The add-on to the interest rate is .375% for No doc and .25% for Stated Income mortgages. 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 programs 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 difficulty documenting your income with you normal bank then a no income documentation mortgage may be just what you have been looking for.
