Is there anyway to get a mortgage with stated income?

Is there such a thing as "Stated Income" loans anymore?? The answer is no... Sort of...The Financial Reform Bill HR4173 signed into law by President Obama on 8/1/10 outlaws stated income and no doc loans.Section 1411 reads:''(4) INCOME VERIFICATION.--A creditor making a residentialmortgage loan shall verify amounts of income or assets thatsuch creditor relies on to determine repayment ability, includingexpected income or assets, by reviewing the consumer's InternalRevenue Service Form W-2, tax returns, payroll receipts, financialinstitution records, or other third-party documents thatprovide reasonably reliable evidence of the consumer's incomeor assets..."The new law does allow exceptions to this rule for HUD, VA, USDA and Rural Housing Service loans, however the exceptions usually refer to streamline refinancing of these loans.Lenders are now required to verify that you have income and the ability to repay. For conventional, FHA, VA, and USDA, this means tax returns, w2's and or 1099's and paystubs. However for hard money, soft money, and portfolio loans where the mortgage is not insured, the lender can choose their own form of verification. For example, I had a client that had just had a foreclosure on a property he was $100K negative. He had a 401K and wanted to take some of the money out and use it as a down payment to purchase a home. Under conventional, FHA, VA and USDA, there is a mandatory waiting period of 2 to 3 years after a foreclosure before you can get approved for a new mortgage. We arranged financing through a "Hard Money" lender. Terms and interest rate were ridiculous; however we were able to get financing for him just months after his foreclosure. He was self employed and was putting 40% down. His tax returns show very little income, however he did have a large amount of money going in and out of his business account. The lender used his bank statements for the business account to show he had the ability to repay the loan, thus complying with the new law. So, for the majority of us who wish to use conventional lenders for our financing needs, the stated income loan no longer exists. However if you have no choice but to use "Hard Money" lenders, then financing is available to you with very relaxed guidelines for verifying your ability to repay. Rest assured they will find a way to allow you to pay more than double the going rate, and hit you hard on lender costs, but a loan does exist for you. WilliamAcres.com

You have presented an interesting set of circumstances. You admit your credit is not great, with a score of around 550 and yet you want a lender to lend you $150,000 or more based on what you "state" you make. Sadly, it is because so many loans that were granted with approval based on what the borrower's said they made went bad that these kind of loans are no longer available. A fresh tax season is upon you. Make sure your accountant is properly reporting your income. Once you have filed your tax return, the income reported from self employment is treated similar to income from wages because it is documented with the return. If your documented income is sufficient to support the loan you are looking for, then you are likely to get an approval, otherwise you won't Good luck to you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Hi Sara,I'm located in Hernando, MS (close to Memphis, TN and Southaven, MS) - not too far from Tupelo. I would like to suggest working on your credit. There may be things you can do to improve your credit much sooner than a year. My credit advice is free, so it won't cost you anything except a little time. If you're interested, then please call me at (662) 429-5100 Ext. 105. Thanks! - - Doug Capps, Fairway Mortgage, NMLS ID #68160. Or you can email me at dougc@fairwaymc.com.

Sara- You do not need a stated income loan. A good loan officer can enroll you into a program called "Avail" by Funding Suite. (www.findinsuite.com). Might not take a year?For those that came to this tread because of the Title- This is a page from my "Little Book-Site.".Titled: No-Doc & Stated Income LoansIn The PastIn the past, most borrowers with optimized tax returns, reflecting a low AGI for their lifestyle, received a No Doc or Stated Income Loan. Not that their actual income was impossible to prove, it was time consuming, difficult and tedious to prove. Most loan originators did not want to take the time to go through the trouble of structuring a full documentation loan. When they were willing, most borrowers did not want to go through the trouble to provide the required documents. It was much easier going "No Doc" or "Stated." For ethical borrowers, stated income was not a "Liars Loan," it was a "Lazy Loan," at a higher cost. No Doc was even simpler and more costly. Like Form 4506T, which was not processed, lenders had access, but did not fully utilize information Mortgage Electronic Registration Systems, Inc. (MERS) has compiled on past and current borrowers and other consumer reporting agencies which provide "specialty information." NowFull Documentation LoanLenders always required a Form 4506T to be signed by the borrower. Although, in the past, this was usually just placed in the borrower's loan file, without being processed. Now, they compare the borrower's IRS transcripts with the income documentation provided, allowing for certain tax deductions to be structured as qualifying income. This is performed by using Form 1084 and Form 1088. After performing this and your DTI ratios are still too high you may bring your DTI ratios in line by: Paying down debt; Increasing down payment; Lowering loan amount; Change loan programs; Use pledged assets or asset utilization; Add a Cosigner; File 1040Xs for the past two years. CLICK => NEXT => TURN => PAGES Next Happy funding- Rudi