What does this mean??? Please smart people help....?

Question

I have a question to what #1 means....




1) Pre-Qualification (Stated Income - $20,000 verified assets required)

***************** Does that mean I need to make atleast 20,000 a year??? I need to already own a house with more then $20,000 in assets??? Or I dont get it...I guess that is why I am asking for help.






I only included the rest of what I was reading so you had something else to go on.






2) Once Approved - 3 checks need to be written $2,000.00 in total; built

(Contract Deposit $500.00, Building Deposit $1,000.00, Appraisal $500

Then $-0- will be due at closing. That makes a total of $2,000.00 cash out-of-pocket needed for this investment. Construction loans, typically will close in 30 - 45 days, no additional cash is needed for closing and zero payments during construction.



At completion (10 to 12 months), you can sell your home and harvest the built up equity - appreciation or rent

Answer 1

You should contact the company and/or a mortgage company and ask more questions about it if you don't understand something...the more you know the better it is for you...this will help you decide what to do...If unsure, perhaps you should hire an real estate attorney before you do any business with the company....

But this is how SIVA (stated income, verified asset) work:

SIVA doc types are available to a wide variety of borrowers with poor to excellent credit. The minimum credit score is typically 500 and, in most cases, the mortgage history can reflect no worse than a 90 day late payment on their mortgage. These parameters will vary from lender to lender. However, what is always true is that the higher the credit scores and the better the mortgage history, the higher the Loan to Value ratios can be and the more an individual can borrow against their property.


SIVA doc types also have different parameters for the verification of assets. In most cases a lender will verify that a borrower has two months of the monthly PITI payment (Principal, Interest, Taxes and Insurance) in reserves. However, for higher loan amounts or specialty programs that requirement can go as high as six months of reserves. In a few cases, the reserves may be based not on the PITI payment but on the monthly income stated on the application.

Borrowers must also be able to verify they have some source of income based on their status:

Self-Employed - The most common way to show a source of income is a current business license.

Stated-Wage Earners - The official title for salaried individuals who cannot present W2's or pay check stubs. A Verification of Employment (VOE) must still be sent to the borrower's place of employment, where an authorized agent of the employer must verify the borrower is gainfully employed but is not asked to disclose any compensation information.

Answer 2

I understand it to mean you need to have at the very least the (income stated minus $20,000) in order to qualify for whatever you are trying to invest in. Assets can be shares, cash/capital, CDs, property or land etc, which they can verrify that you own. Meaning intangibles would not qualify in this case.

NB: never invest in something you do not understand. Also, get a lawyer or qualified accountant to help you understand the contract and the numbers required.

Answer 3

Sounds like a get rich quick, not necessarily a scam but a scheme.
I think it means you got 20k in negotiable assets. Like you're good for it and can prove it.

Answer 4

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