Is that legal? I know couple of friends who bought their house this way. I live in Southern California.
2007-04-28 08:16:11 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Actually my friends who got the loans couple of years ago and bought their homes made about $200,000 each.
2007-04-28 08:22:07 · update #1
If it's illegal, how do I report it? who do i report it to?
2007-04-28 08:23:43 · update #2
Inflated income is illegal carries a $250,000.00 fine 10 years imprisonment.
It is acceptable on these terms only:
Non taxable income: Social Security Income, Retired Income,etc. 115-125% max:
Stated income loan programs: Must not increase more than 35% of the median income of the job field or it is considered fraudulent.
The best mortgage programs for these type of loans are:
No Ratio Loans: A No Ratio Mortgage is a useful option if you are carrying more debt than a traditional mortgage loan will allow. In traditional mortgage banking your debt to income ratio is one of the key factors in determining loan approval. Your debt ratio is calculated by dividing your total monthly payments by your monthly pre tax income.
NO DOC or NIV loans: Under NIV loan programs, the applicant's income is not verified by any of these methods. The applicant is qualified from the income stated on his loan application, and with less money down or higher equity on refinances, the applicant is qualified without the necessity of even stating his or her income.
2007-05-02 03:37:35 · answer #1 · answered by RSUM 2 · 0⤊ 0⤋
It's illegal, why not look for a No doc or No ratio loan? These loans do not require you state income.
2007-05-01 16:32:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You don't state your income on a NO DOC loan......For a stated income loan, you state your income. To go as high as 75% of your income is fraud. You may be able to get away with it, or JAIL time....
2007-04-28 13:04:46 · answer #3 · answered by ron d 3 · 2⤊ 0⤋
Is the loan based on your income? If it is, you may end up with payments you can't afford, and according to the article below, that is the least of your problems. Can't speak to legalities, but misrepresentation on a contract isn't a good thing.
2007-04-28 08:22:50 · answer #4 · answered by rbrinny 2 · 0⤊ 2⤋
Right. We call that mortgage fraud. Probably have heard about it on the news as of late...
You may report illegal mortgage activity to your state's department of banking and finance.
2007-04-28 08:25:16 · answer #5 · answered by Anonymous · 2⤊ 1⤋
yes it is legal but fraud does exist with these types of loans. So there is nothing u can report only if it looks fraudulent.
2007-04-28 09:17:08 · answer #6 · answered by tinnee 2 · 2⤊ 1⤋
No, it isn't legal and why be dishonest? Haven't you heard that cheating never pays off?
2007-04-28 08:20:13 · answer #7 · answered by Jan C 7 · 0⤊ 2⤋
it is extremely illegal and you could go to jail or be heavily fined!!!!!
2007-04-28 08:21:30 · answer #8 · answered by daniel m 4 · 0⤊ 2⤋
as long as you have a documented person lie for you.
2007-04-28 16:23:06 · answer #9 · answered by Terri L 2 · 2⤊ 3⤋