Here are some more details, my husband and I work for the gov and we have being in the same job for 12 yrs, child support is only $450 that comes out straight from his check before they pay him is deducted and send to Child support Services so we never see that money. We make close to $10,000 gross monthly.
I know rates are higher for stated loan/no doc.
Understand that I'm not bragging about our credit or income I just trying to understand why he is trying to use this type of loan.
Thanks for all your answers
2006-12-30 06:10:08 · 4 answers · asked by mmcpo29 2 in Business & Finance ➔ Renting & Real Estate
as a stated earlier, stated income loans are well known.
there has to be a reason why the lender is doing this type of doc prep. if i was you i would ask him. if you can qualify for a conventional mortgage with a lower rate of interest then why aren't you getting that loan? ask him this. you don't suppose this lender is trying to fill up a portfolio package and put your stated income loan in and sell in the market place. maybe this lender needs more of these type loans to fill this portfolio----ask them...if so then transfer to whole loan package to another lender so you won't have to pay for credit reports, appraisal, etc.
2006-12-30 06:18:55 · answer #1 · answered by lake living 5 · 0⤊ 0⤋
You didn't mention the price of the house you're buying and you didn't mention how much you're putting down for a down payment. These are two important pieces of info, and I'm betting (even with your good income) the house you are buying is too expensive.
The only time it makes sense to do a low-doc loan on a W2 employee is if the debt-to-income ratio is too high. Again, this means the home you're buying is too expensive for your income.
FYI - as you and your husband are W2 employees, be careful that the income stated on the application is not too overly inflated. To do so, could get you in hot water legally. Ask the lender about a "No Ratio" loan, whereby the income is not listed at all.
2006-12-30 16:45:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If I were making a guess -- and I can't speak for someone else's mindset of course -- I'd say that he wants to hide his (your) true financial position form scrutiny.
No doc loans are best for self-employed or commissions earners where it's difficult to prove a steady income. For someone on a salary, it usually just doesn't make sense to be honest since you pay out more money and get no benefit in return; it's literally throwing money in the trash.
If you want to know why HE wants to go that route, you'll have to ask HIM. Nobody else can answer that question. And if he refuses to or doesn't offer a rational explanation, you have other issues you need to address before you buy a home with this guy, husband or not!
2006-12-30 14:23:48 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Possibly to state your combined income to be higher than it actually is in order to reduce the debt to income ratio, thus qualifying for the loan.
2006-12-30 14:39:41 · answer #4 · answered by staceydian 2 · 0⤊ 0⤋