Comments on: Stated income from a mortgage professional’s stand point – part 2

By: Tony Gallegos

Tony Gallegos — Sun, 06 May 2007 22:36:49 +0000

Super post! Alt-A loans are just like subprime loans…are they inherently bad? The answer depends(to steal your term. When used appropiately, they are excellent financing vehicles, however when put in the wrong and greedy hands, they are horrible.

By: Morgan Brown

Morgan Brown — Sat, 05 May 2007 23:12:02 +0000

Thanks for the compliments! I hate saying “it depends” but, it depends. If you’ve been in the same line of work for the last two years and have income for the first half of 2006 and all of 2005 for your previous job you “should” be able to qualify full document.

If you had no previous employment prior to 2006 or it was a different line of work you’d most likely need to go stated income. There are other options as well, if you look at a subprime loan with a fully documented program using bank statements or something similar. It really depends on your situation.

Also, there is a difference between SISA and stated income. SISA stands for stated income stated assets, which is a more risky loan than stated income verified assets or SIVA. If you have assets that can be verfied (usually a few months’ mortgage payments worth) you can qualify for SIVA which is a better rate (usually) than SISA programs.

If you have further questions feel free to email me at morganb [at] gmail [dot] com.

Morgan

By: mitigateddisaster

mitigateddisaster — Sat, 05 May 2007 06:15:48 +0000

I like your blog. Looking forward to reading more. If you don’t mind, I have a question about stated income loans from a borrower perspective: What if you started your job halfway through 2006, so your 2006 W2 doesn’t reflect your real income? Do you have to do a SISA loan, or can you do a full doc using paystubs, bank statements, etc? thanks in advance!