refi on primary home with stated income?

tomcrown · Joined: 20 Oct 2009 Posts: 2

Here is my situation, I have 6 mtgs, 5 investments and 1 primary. I want to refi my primary no cash out. I am self employed, FICO 742, zero credit card debt, substantial cash reserves, have equity in every property. Primary home is worth 230,000, mtg. balance 99,000. To many guidelines now in the mtg. industry especially ratios. No late payments on any mtg. Is there anyone out there that does stated income or can help me refi? :(

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Yes, there are stated income programs out there. It will all depend upon where that property is located. Can you share that?

The most aggressive stated income programs out there are in NJ, NY and CT. Great rates too.

Roger_Silvester · Joined: 29 Jun 2009 Posts: 51

When you refinance your primary residence, keep in mind that this will be one of your biggest transactions of your life. You must do your research and educate yourself on everything so that you will be ensured the best rate and closing costs. If you are planning to stay in your home long term, it's beneficial to go through a mortgage company that can offer WHOLESALE rates. It's always important to do your research on the mortgage company and see what kind of ratings, reviews, and complaints that they have had in the past. Going to the Better Business Bureau is one of the best resources to see how legitimate a company is and you can also find out if they are an accredited company. If you are looking to be in your home for short period of time, it's always to the borrower's advantage to take the higher interest rate and get minimal closing costs because you won't re-coup the costs.

tomcrown · Joined: 20 Oct 2009 Posts: 2

I am located in Ct

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Tom

Although you do not have to verify your income, it DOES have to make sense for the type of business you are in. So, if those numbers work, then this should not be a problem for you.

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 96 Location: Rosemount, MN

tomcrown wrote: Here is my situation, I have 6 mtgs, 5 investments and 1 primary. I want to refi my primary no cash out. I am self employed, FICO 742, zero credit card debt, substantial cash reserves, have equity in every property. Primary home is worth 230,000, mtg. balance 99,000. To many guidelines now in the mtg. industry especially ratios. No late payments on any mtg. Is there anyone out there that does stated income or can help me refi? :(

"Too many guidelines"?? How about you claim (get taxed on) ample income to qualify for loans?

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Tim

I hear what you are saying, but that is unreasonable. The government has provided tax benefits to self employed borrowers and this guy is simply taking advantage of them. You want him NOT to take his legal business deductions for two full years so he can qualify for a mortgage?

Salaried borrowers can put their gross monthly income on the 1003, but then take all kinds of tax deductions afterwards. The system is broken.

meflee · Joined: 28 Oct 2009 Posts: 5

Stated income loans are pretty much extinct. You'll have to provide documentation of your income.

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 96 Location: Rosemount, MN

EricJ wrote: Tim

I hear what you are saying, but that is unreasonable. The government has provided tax benefits to self employed borrowers and this guy is simply taking advantage of them. You want him NOT to take his legal business deductions for two full years so he can qualify for a mortgage?

Salaried borrowers can put their gross monthly income on the 1003, but then take all kinds of tax deductions afterwards. The system is broken.

If there is not enough income left after legitimate expenses then why should someone qualify for a loan. Kind of strange that some S/E people can seem to make large mortgage payments when the numbers say otherwise.

The system is broken, as in many of the self-employed don't pay their share of the taxes in this country. Just my opinion.

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

This country was built on the backs of small business owners. If you take away the tax advantages, then they are better off working for someone else. If you take those businesses away, then you take many jobs away too because they employ people.

Example, the typical Subway sandwich shop owner only makes about $30k per year net. It is actually ridiculous when you consider the hours they have to put in. So, the only way they can truly earn enough to support the family is by owning 4 of them or by claiming all of the legal deductions.