Stated Income Loan

richn · Joined: 09 Mar 2005 Posts: 3

I am trying to get a loan and my mortgage officer is pointing me in the direction of a stated loan.

I'm self employed and own my own business. I've been self employed for about 8 years. However, I have always done my own taxes and have not used a CPA.

I am being asked to get a letter from a CPA stating that I have been self-employed for the past 2 years. This is not very easy since CPA's are not willing to just write a letter since I am not a client.

Do you have any suggestions?

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

there are ways around that..ask your loan officer about using your business license,an attorneys letter and/or your yellow page listings....there are ways around that.....you can also submit your taxes for the last two years with all the figures blacked out..so they can see you filed as self employed.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: I am trying to get a loan and my mortgage officer is pointing me in the direction of a stated loan.

Keep an eye on your lender and make sure that they're ethical about this. You know how much money you make, don't let them tell you that you 'could' make more than that.

Becca's right on the nose and if you're working with someone that doesn't think of the alternatives, you may not be in the best program either. It's possible that when you said 'self employed' they thought 'stated for sure!'

richn · Joined: 09 Mar 2005 Posts: 3

I appreciate your repsonses. So far, the underwriter has our last two tax returns which do show our income, schedule C, 1099-Misc income, etc. In addition, they have 12 months of bank statements which show our deposits (no overdrafts).

Even though I've been self employed, we just formed our LLC in September 2004, so we don't have a business license to show for two years. I have been an independent contractor up until then. It is the same line of work, we formed the LLC for liability protection... but that's a whole other topic.

It seems as if the tax returns, bank statements should be enough, but according to them, I just need a letter from a CPA stating I've been self employed for the last two years. I guess that gives the underwriter more faith in us and sees us as less of a risk.

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

the cpa letter is just a letter from someone they can hold liable if something happened and you werent self employed..thats why an attorney can also write it in most cases..the fact that the underwriter already has your w2's with income showing tell me that you are now unable to go stated...they have seen your income now....

there are many ways to skin this cat..just make sure whoever your working with is working for you....

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Ya I was wondering about that as well heh.

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

great minds think alike!!!

richn · Joined: 09 Mar 2005 Posts: 3

Actually, no W-2's since I'm self employed. Would an attorney letter be easier to get? Any idea what they would need in order to write a Stated Letter?

Thanks once again.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

When I was brokering they requested that the CPA state that you not only have been self employed for 2 years, but also that they had been working for your (e.g. your taxes) for 2 years. Is this what they are questing or is it just simply that you're self employed for 2 years? If that's it, all you have to do is find someone that you can walk into, say 'look, here's proof that I've been self employed for 2 years, will you write up a note on letterhead..' and you're done.

chow · Posted: Wed Mar 09, 2005 7:59 pm Post subject:

:roll: yes is that really right? :roll:

Ethically you must ask all parties:

will this payment work?

is the best program for the borrowers?

Do you people know how rich I'd be now if I didn't have to ask myself these things and sleep at night-with myself?

it always comes back to ETHIC'S 101!

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

Something smells fishy here.

If the underwriter already has your bank statements and your last 2 years tax returns showing your income, a CPA letter will not help because you shouldn't be going into a stated loan. You have provided enough evidence for a full doc (and then some) loan.

Be careful what you sign if this ends up going towards closing. If the income on the application does not jive with what you know to be true, do not sign for this loan.

chow · Posted: Fri Mar 11, 2005 7:44 pm Post subject:

You never, ever apply for a "Stated Income" loan,/"NINA" and sign a 4506.

You can apply for a NIVA loan, and get a good deal-but you just supply bank statements with balances. Never Income, or taxes.

A True SISA loan will never ask you for a 4506. :lol:

If the LO is submitting a 4506 and you have NOT supplied taxes or Bank Statements. Do NOT sign the 4606. :shock:

If you do submit any income forms :shock: -date it. The form says they have 60 days to verify records. If it's a problem, and you're doing a true NO DOC loan, it's waived. :roll: (Lender's have these standard forms sent to evey closing)

Never go to a closing and NOT date every page- where there is a place to date. If you're doing a limited doc deal, and you're the LO....go to closing. Read the instructions, and bring your underwriting file with you!

Now, I know I might get smacked around, but we have too many "No Doc" deals, and the newbies are getting sucked in the mud! :roll:

Personally I like the NIVA program. No income, Verified Asssssssseeettttsss with money in the bank for 10 years of payments for $375.99 a month?????

Jenie0109 · Joined: 27 Jan 2009 Posts: 307 Location: chicago IL

great tips! great posts.