STATED INCOME ALT in 2018

11 Replies

I don't care what anyone says, the fact is the 100% No Doc, Hybrid Option Arms with No PMI and 2% start rate was an AWESOME financing tools for responsible borrowers.

However, they were like taking a 15 yr old from a mini-bike to a Ninja motorcycle for the first time and telling them to be very careful!  What did 90% of people do?   "I'm an "experienced" investor, I've bought 4 houses, so I got this" .... Full Throttle baby!    

Post Dodd Frank Act and all the new Federal lending laws, proving ATR (Ability To Repay) is the name of the game these days. 

Stated Income ALT loan programs for Florida are filling the void.These programs are much more lenient and allow Alternative income streams to qualify such as:

  • Liquid Asset calculations for income
  • Business Bank Deposits
  • Personal Bank Deposits
  • Expected Income
  • New Employment income
  • 1099 Income
  • Commissions & Bonuses
  • Account Receivables
  • Note Receivables
  • Contracts for future income
  • New Rental Income
  • Expected Rental Income from property planning to rent
  • Considerably different calculations on Tax returns

Has anyone seen these new Stated Income ALT programs that are filling the void between Fannie Mae and Hard Money?

@Steve McRory Interested in hearing more about this. Just sent you a PM.

I'm not a lender, I'm what the vast majority of you should be working with, I'm a Mortgage Broker. 

...."Oh, you're not a "direct" lenderrrr?"  (cracks up all Mortgage Brokers when we hear this as we immediately know the mindset of the client)  No,  I'm not a "direct" lenderrrr who only has their few set programs.   As a Broker, I have access to many lenders and thousands of loan programs.

The irony of this is I agree with you and also disagree.  For me, I'm responsible with finances.  I know what I can and cannot afford so this type of loan is something that could work for me, especially without that W2 statement anymore.

However, 90% of people are still the 15 year old kid going straight to a ninja bike and there are new 15 year olds every day.  People are greedy, people are frivolous and human nature is human nature in the end lol.

I will DM you in case I need this type of loan, which I may for out of state property.

Are you only in Florida?

I can do commercial outside of FL, just primary and 2nd homes in FL.

And to Mitchell's comments, you are so right.  Many new clients, especially Self Employed, who have not obtained a loan since the melt-down are the biggest Know-it-alls.

And the ones who start the conversations telling you how experienced they are, and even WORSE, that they 'used" to be in the mortgage business or "used" to be a realtor.

Prior Mortgage Brokers?  I do not even want them to call me! 

Why?  They have just enough out dated and irrelevant knowledge from a time that may as well never even happened, to cause issues from start to finish, but the entire way want to remind you that they "used" to be a broker...and how they "used" to do things...Bla...Bla...Bla   

And to Mitchell's comments, you are so right. Many new clients, especially Self Employed, who have not obtained a loan since the melt-down are the biggest Know-it-alls.

The ones who start the conversations telling you how experienced they are and that they 'used" to be in the mortgage business or "used" to be a realtor .are the WORST clients!

Prior Mortgage Brokers?   Go Away! I do not even want them to contact me!

Why? Because they all have just enough out dated and irrelevant knowledge from a time that may as well never even have happened, to cause problems from start to finish, but the entire way they remind you that they "used" to be a broker...and how they "used" to do things...Bla...Bla...Bla

Prior Mortgage Brokers, if I do take on their loans, but the few I have, I make darn sure they know that nobody cares or wants to hear how you "used" to things when they were a Broker back in 2004! 

Michael In Texas.  I used No Doc loans responsibly back in the mid 2000's.  They were great if you didn't over leverage and were disciplined enough to positively cash flow the properties you used them to acquire and hold.  There is a need today for a product that is low doc, that disciplined investors can use to buy and/or refinance rental property they intend to hold for more than a 1 or 2 year term.  A 5 to 8%, 15 to 30 year mortgage is workable for many situations.

I am working through a list of lenders right now if you have any leads please let us know.  One lead I do have is Visio Financial out of Austin Texas.  They offer a 30 year fixed around 6.5 to 7.5%, for investors.

Thanks  

docmike444

I bought 3 properties with stated income loan in 2006, I still have them and never missed a payment. I think stated income loans area great products for responsible people, and normally can be measured by their credit scores . Am I right ? I hate to jump thousands of hoops that the lenders request. Stated income loans saved me a lot of time and headache . 

Anyone out there can do stated income loan in Utah or Texas pls let me know. 

Thanks a lot 

The Stated Income loans of 2006 are a lot different than today's Stated Income ALT loans.   However, they are generally a lot more flexible depending if it is for a Primary, 2nd home or Rental property.

Because for all intent and purposes, rental property is considered Commercial, there is not the dark cloud (i.e. The Dodd Frank Act) hanging over them, with all its crushing regulations. But the days of rates, cost and terms being close to Full Doc, W-2, vanilla Fannie Mae type programs are over.

Still, for most, they're a lot better option than sinking so much money into Dead Equity by paying cash.        

Any current stated income programs you guys/girls have used?? Names of banks/lenders??

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