What is a "stated" program?

[TxAngel]

Hi all

 

Does anyone know what a stated program is?!?!?! :?

[willtygart]

Well as I have stated before.......... ............a stated program is one where you merley state your income and it is not verified. Of course..if you are a janitor and claim to make 100k a year, your check better be signed by Bill Gates.........a bunch of people confuse themselves if they are self employed.

 

They figure that if you dont have a w-2 then you dont have proof of income. 1099 , self employed, tax schedules, bank statements, these all can be full doc. Sometimes, as Dac Man has stated......... (I love that werd stated)......you can get an approval that only asks the broker/lender to verbaly berify your employment and not your income. The best way to go with a stated program is if you are just under the income requirements or have a really hard time showing your income.

 

If you have great credit but not near the income, please don't get talked into a stated loan because if you are pretty far from where you need to be to afford a home.......going stated will get you the home but not the extra cash needed to pay the mortgage each month.

 

BTW, it is much easier to be a Self Employed Stated Borrower then a wage earner.....some banks figure if you work for someone then you are probably only going stated because you don't make enough money to afford the home. "Good Luck!", stated Will :wink:

[willtygart]

Well as I have stated before.......... ............a stated program is one where you merley state your income and it is not verified. Of course..if you are a janitor and claim to make 100k a year, your check better be signed by Bill Gates.........a bunch of people confuse themselves if they are self employed.

 

They figure that if you dont have a w-2 then you dont have proof of income. 1099 , self employed, tax schedules, bank statements, these all can be full doc. Sometimes, as Dac Man has stated......... (I love that werd stated)......you can get an approval that only asks the broker/lender to verbaly berify your employment and not your income. The best way to go with a stated program is if you are just under the income requirements or have a really hard time showing your income.

 

If you have great credit but not near the income, please don't get talked into a stated loan because if you are pretty far from where you need to be to afford a home.......going stated will get you the home but not the extra cash needed to pay the mortgage each month.

 

BTW, it is much easier to be a Self Employed Stated Borrower then a wage earner.....some banks figure if you work for someone then you are probably only going stated because you don't make enough money to afford the home. "Good Luck!", stated Will :wink:

[TxAngel]

Thanks Will!

 

Now, it kind of makes me wonder why the lender suggested us to go this route.......we're not trying to get a $500MM home....LOL

Anyway, thanks for the insight!

[NeedItNow]

TX,

 

Well, he may be trying to make you conforming. If DH earns say 4k a month, his max amount of money available for payments would be around 1520 a month. If he has a car payment of say 500, he is down to 1k already. You can't get much house for 1K when you include principle, interest, taxes, and insurance. Fannie allows the 38% back ratio to be exceed for strong credit; it is not set in stone. I am just guessing the ratio issue may perhaps be the reason for the stated income mention.

 

Matt