The previous year and a half or so has seen a historic chain of events occur in the New Jersey commercial lender industry with the closing of hundreds if not thousands of loan companies and the elimination of many of the so-called “exotic” products.
When the dust finally settled only the best have remained ready and able to lend to qualified borrows. We are proud to be among those standing tall and offering the very top of what is available today for the clients. Along with standard New Jersey reverse mortgage that we have available, we are among the few remaining mortgage companies that can offer No Income Verification mortgages to our highly qualified New York borrowers.
What is the difference between “No Income Verification” from “Stated Income” loans?
The answer is that true “No Income” allows for the verification of a person’s employment while allowing the income section of the application to remain blank. A “Stated Income” mortgage on the other hand, requires a home owner to “state” an income to be used on the loan application form, but not be verified. It must however, make sense for job that the borrower’s is in. In both cases, monetary verification is a must and must be large enough to warrant approval of the loan. There is no set calculation as only common sense will prevail. It is important to note that these products are for owner occupied properties ONLY and the person’s MUST be self-employed or retired.
What is the plus of going with a “No Income” or “Stated Income” loan?
With the changes that have occured in the industry there is not a higher level of automated underwriting approval that allows for income to be approved as stated therefore, the only choices available for the self-employed or retired borrower are those previously mentioned. Stated Income loans are allowed up to 70% loan to value (LTV) while No Income loans are limited to 60% LTV.
What make these products great as well is that the interest rates are quite like to Fannie Mae and Freddie Mac income verified mortgages. The add-on to the interest rate is .375% for No documentation and .25% for Stated Income mortgages. To be more specific a 30 year fixed rate as of this blog posting would be 5.50% up to $417K for No Income and 5.375% for Stated Income. These choices are available for our 5/1, 7/1, 10/1 ARMS as well as our 10, 15 and 40 year fixed.
If you have been having trouble proving your income with you normal mortgage company then a no income documentation loan may be just what you have been hoping for.
Fetch helpful knowledge about forex book – study the page. The times have come when concise information is truly at your fingertips, use this possibility.
RSS FEED
