UncleBuck
Well-Known Member
anyone know anything about these?
seems like they are less common since after the crash, and even illegal in some states.
the idea of it is to help people who are self employed or whose income documentation may not make grade for a traditional mortgage loan. instead of documenting your income with all the regular documents, you just state your income and occupation.
from what i can tell, they only make sure it passes the sniff test (ie, if you say you are a barber making $300k, you'll be denied) and if you don't make payments they may pull a 4506 the next year to actually verify and document your income.
naturally, it comes with a slightly higher interest rate (half a point to a point at most) and a slightly heftier down payment due to the natural risk that comes with this type of loan.
talked to a buddy of mine who works for a major bank and all he had to say is that they are "shady", which i buy.
anyone else know more about these types of loans?
seems like they are less common since after the crash, and even illegal in some states.
the idea of it is to help people who are self employed or whose income documentation may not make grade for a traditional mortgage loan. instead of documenting your income with all the regular documents, you just state your income and occupation.
from what i can tell, they only make sure it passes the sniff test (ie, if you say you are a barber making $300k, you'll be denied) and if you don't make payments they may pull a 4506 the next year to actually verify and document your income.
naturally, it comes with a slightly higher interest rate (half a point to a point at most) and a slightly heftier down payment due to the natural risk that comes with this type of loan.
talked to a buddy of mine who works for a major bank and all he had to say is that they are "shady", which i buy.
anyone else know more about these types of loans?
