Mortgage Loan Most Bankers Wont Give May Be Exactly What You Need to Buy or Refinance Your Home

A few years ago, a loan officer who worked for me was having a problem helping a customer. He was new to the business and had very little patience for problems (as you might have already guessed, he didn't last very long). He told me the customer was a doctor, who had left a hospital job to open his own practice. He was trying to refinance a $300,000 home, but he could not show any current income. After the loan officer and I discussed the options, he walked away from the loan, completely frustrated. So, I asked him if I could work on it. He agreed, saying he didn't wanted to be bothered with it any longer. So, I did what all good mortgage professionals do, and I picked up the telephone and began calling lenders and telling them the problems with the customer.

After a couple of hours of examining the gentleman's loan papers and talking to him and several lender representatives, I found the solution ? a Stated Income program. You see, this customer, in most conventional bankers' eyes was not "bankable," because he really did not have any income. He would have plenty of income in a few short months, but banks don't loan on what you may have. Wholesale mortgage lenders are different. When I reached the branch manager of one of top lenders in the country, I explained the situation to him. Most importantly, I told him that my customer had nearly perfect credit, and he could show 18 straight months of W-2 income of well over $200,000. Furthermore, he had plenty of equity in his house and maintained over $100,000 in liquid assets (stocks, bonds and savings).

"This is no problem," the branch manager said. "Simply write the amount he needs to make on the application. With everything else this guy has going for him, I'll sign off on this loan tomorrow." And that was all there was to it ? we just had to put the right numbers on the paper. Once again, you need a mortgage professional for this special program. Not many banks offer stated programs. Many people who need stated programs get turned down by not only banks but by inexperienced mortgage brokers who don't understand the breadth of the programs at their fingertips. So, you may have to enlighten them with your own insight by telling them this is the program you need.

Stated programs are for people who may not qualify for a conventional loan, because they do not meet income requirements a lender has, like the gentleman in the previous example. Another example is someone who does not show all of her income on a W-2 tax return, for one reason or another. This person may make enough money to cover the mortgage payment, but she can't prove she makes it on paper. Lenders like to see two years of W-2 income. This proves to them that you consistently make enough money to pay back the loan. Now, it's important to note that this is a good credit program, and a lender will want someone with at least A-minus credit for approval.

All the loan requires is all standard documents, except income verification. In other words, the loan officer is going to state your income on the application, and no proof is required. Please note that this program is not intended for someone who works at McDonalds to try to state that he makes $200,000 yearly, so he can get approved for a $400,000 loan. It is intended for people, like salesmen, whose incomes fluctuate or for businessmen, who work on bonuses, which they may not receive until the next year. As long as the income is reasonable for the profession, no underwriter will ever question it.

So, if you needed to make 60,000 yearly for approval, but you only show $54,000 on last year's W-2, your broker can get you a stated program, and he will simply write $60,000 on the application. Don't worry, the lender won't ask for pay stubs or tax returns.

This seems fraudulent, you might say. It isn't, as long as you follow the guidelines set forth by the lender. Remember, they created this program, so they could loan more money. You'll pay, of course, because the lender will hit you with a premium on your rate, because the loan is more of a risk. So, instead of getting a 6% rate, you might get as high as 6.75%, but at least you'll get your loan.

Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com

---

Stated Income Mortgage Loan - Get Approved Online

A stated income or no doc mortgage loan allows individuals... Read More

Composite Credit Report Score Simplifies Mortgage Issues

Do you want a mortgage loan for your new home?... Read More

Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve

Home equity is your own personal money machine. If you... Read More

What is a Commercial Mortgage?

A commercial mortgage is a loan that uses commercial property... Read More

Are You Ready for a 40-year Mortgage?

Real estate prices have been increasing steadily over the last... Read More

Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?

When you're shopping for a new home-especially for the first... Read More

Repayment Remortgages is The Cure For Outdated Endowment Policy

If bulls and the bears of the stock market have... Read More

Home Mortgages: Should You Apply Now?

If you're thinking about applying for a new mortgage or... Read More

Home Loans ? Repair Credit Errors in Three Days!

Most consumers are aware that a history of paying bills... Read More

Home Loans and Mortgages ? The Myth of Tax Deductible Interest

Home ownership has risen sharply in recent years, and the... Read More

Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions

Mortgages are easy as long as you understand them well.... Read More

Tips On New York Mortgage Refinance Loan

Many homeowners want to know if it worth taking a... Read More

Buy a Home With a Government Grant? Avoid this Scam

If you watch enough late night television, you'll see advertisements... Read More

What is a Homeowner Loan?

If you are a homeowner, it couldn't be easier to... Read More

The Mortgage Loan Application Online - Save Time & Money By Applying On The Internet

"You can save time and money by applying for a... Read More

Should You Get a Home Inspection?

It's very important, and in my opinion, mandatory to have... Read More

Taking the Time to Find the Best Home Improvement Loans

The best home improvement loans usually aren't going to be... Read More

13 Extra Costs to be Aware of Before Buying a Home

Whether you're looking to buy your first home, or trading... Read More

Bad Credit Home Loan - Apply Online and Keep Your Credit Score as High as Possible

If you have a poor or bad credit history with... Read More

Using a Mortgage Refinance Company Online

Online mortgage companies make refinancing convenient and competitive. By researching... Read More

Tips for Getting Home Loans from the Right Lenders

Getting home loans is possibly the biggest step in an... Read More

Home Equity Loan Risks

Home equity loans give individuals a tool to extend their... Read More

Home Equity Loans ? Research Your Lender Carefully

Real estate prices are rising across the country, and Americans... Read More

New York Refinance - Refinancing in New York

If you are looking to refinance in New York, it... Read More

Shopping for A Mortgage? Do Your Homework First

If you happen to be shopping around for a mortgage,... Read More

Is It Time To Buy A House?

At some point as you're writing out your rent check,... Read More

Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan

I decided to write this article today after closing a... Read More

Refinancing Your Mortgage Can Open Up A Lot Of Options For You And Your Family

It can happen to anyone, the roof is leaking, the... Read More

Option One Mortgage Loans ? Getting an Option ARM or Option One Mortgage Loan

Have you heard about or been interested in finding out... Read More

Home Refinancing Scam ? Thieves Use Identity Theft to Steal Your Equity

Since the demise of the stock market in 2000, the... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

Mortgage Refinancing Companies -- Choosing The Right One

Searching for a mortgage refinance company can be a daunting... Read More

The Right Home Loan - Floating or Fixed Rate Loan

Choosing a home loan has never been tougher. Yes, with... Read More