Answers (23)
- Fred Wittwer, "user41416766"
- Contributions:1
The lender must be very careful on a stated income loan. They will have a difficult time if the loan goes into default. The court is apt to declare they made a predator loan and now allow foreclosure. I am a private bridge lender. I have been advised by my attorney not to make any o/o loans without verifying income by tax returns no matter how much money they have in the bank.
Dallas, tx
Dallas, tx
- Paul Harrison, "user5943252"
- Contributions:1
THERE ARE NO INCOME VERIFICATION LOANS FOR SENIORS (62+) WITH 35% EQUITY FOR BOTH PURCHASES AND REFINANCES.
PAUL HARRISON
RHODE ISLAND AND MASS
PAUL HARRISON
RHODE ISLAND AND MASS
- Jamie Lieb, "EZ Doc Stated Income"
- Contributions:3
The stated income loans for both owner occupied and non owner are available. We are Private Money Lender. Rates are posted on our site. You want to make sure you are dealing with the lender.
So Google [deleted by Zillow moderator] you can find all kinds of lenders that will do what you need.
Look for real posted rates, with terms and a matrix so you are sure you are dealing with the right lender.
Our company we loan in California only.
1st & 2nd Loans. Offering both SIVA and SISA Loans.
Brokers can submit loans to us too.
Good luck hunting on the net for an [deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
- Jamie Lieb, "EZ Doc Stated Income"
- Contributions:3
The stated income loans for both owner occupied and non owner are available. [self promotion deleted by ZIllow moderator. Please see our Good Neighbor Policy for posting guidelines]
- Pasadenan
- Contributions:26042
"Therefore saying we dont qualify for a loan because we wrote off $30k on $100k worth of equipment, even though we didnt actually spend that money." -
You are stating you took a $30k deduction for a $100k purchase, when you never made the $100k purchase?
Something makes no sense here at all.
Of course ALL loan officers and underwriters will make adjustments to schedule C income or other business income when government depreciation factors are applied. If you are not getting them to qualify your income, you are not getting very qualified loan officers.
Yes, if you own rental real estate outright, your are still entitled to take depreciation on it. Eventually, one would need to spend some money for maintenance. But that is all shown on your tax filings, and you only need 2 years of tax filings and some bank statements to verify the income.
As for not being able to respond within 30 days for a purchase? One could easily do all the qualifications and income verification prior to selecting the property.. then the only thing outstanding is the appraisal for the selected property.
Don't forget, that income property has substantially different rates for mortgages than owner occupied.
Mortgage rates are heavily subsidized by the government and the Federal Reserve. If you don't like the system, there are thousands of other funding sources available, especially for businesses.
Remember, anyone that distorts info on their tax filings are cheating all other tax payers and other businesses, including me.
You are stating you took a $30k deduction for a $100k purchase, when you never made the $100k purchase?
Something makes no sense here at all.
Of course ALL loan officers and underwriters will make adjustments to schedule C income or other business income when government depreciation factors are applied. If you are not getting them to qualify your income, you are not getting very qualified loan officers.
Yes, if you own rental real estate outright, your are still entitled to take depreciation on it. Eventually, one would need to spend some money for maintenance. But that is all shown on your tax filings, and you only need 2 years of tax filings and some bank statements to verify the income.
As for not being able to respond within 30 days for a purchase? One could easily do all the qualifications and income verification prior to selecting the property.. then the only thing outstanding is the appraisal for the selected property.
Don't forget, that income property has substantially different rates for mortgages than owner occupied.
Mortgage rates are heavily subsidized by the government and the Federal Reserve. If you don't like the system, there are thousands of other funding sources available, especially for businesses.
Remember, anyone that distorts info on their tax filings are cheating all other tax payers and other businesses, including me.
- Ofe Polack, "Ofe Polack"
- Contributions:3374
Have you tried to obtain a VA loan? I think talking with a few mortgage brokers may give you a better idea of your situation. I'm proud of both of you!!!
- user89665578
- Contributions:1
For the people posting here that say everyone is cheating the IRS, they have never owned their own SMALL business. here is a little insight to how running a small business really works. when you work for a company, you have taxes held out of your check right? Well guess what, when you pay your SS and Medicare tax of 7.65%, guess who pays the other 7.65%? Your employer, not the IRS. When you get fired at work and collect u employement benefits, guess who pays unemployment insurance, your employer. when you get hurt at work and collect workers comp benefits, guess who pays workers comp insurance? Thats right, your employer, not the IRS. The only deductions we can right off legally is depreceation on equipment, vehicles, etc. Now that is NOT actually loss of cash flow, we still have that money in our accout, but most lenders only look at the bottom line and that is it. Therefore saying we dont qualify for a loan because we wrote off $30k on $100k worth of equipment, even though we didnt actually spend that money. That is not cheating/stealing from the IRS, it is legal in every aspect of the law. It is also legal to deduct expenses for adopting a child, for college expenses, are you telling me you would take those deductions if you could? They just dont effect you in the home buying process because you are NOT self employed. End of rant...
- SoCal_Engr
- Contributions:6606
It appears that the answer to the OP's question is "Yes, but with much more stringent terms."
For the remainder, the canned response is "...the industry, and consumers, demonstrated a willingness to abuse the programs - and now everyone gets to enjoy the consequences." Good? Bad? Fair? Unfair? Pretty much a "doesn't really matter, it is".
As for all the rest? It's a matter of semantics and context-based definitions. I take a write-off for depreciation. That's not "income". That's a write-off based on the concept that capital was expended for an asset that is now worth less than it was when purchased - and likely will eventually require additional capital expenditures in the future. How you choose to exercise that write-off is a choice, but it's not reasonable to claim a write-off based on "lost value" on capital assets and simultaneously claim it as income.
As for "cash flow" -v- "income"? "Cash flow" is not an indicator of long-term ability to sustain additional debt. Many of the "RE investors" during the bubble-run were all "cash flow based", and heavily leveraged. All it took was one "oops" and the whole house of cards unraveled.
For the remainder, the canned response is "...the industry, and consumers, demonstrated a willingness to abuse the programs - and now everyone gets to enjoy the consequences." Good? Bad? Fair? Unfair? Pretty much a "doesn't really matter, it is".
As for all the rest? It's a matter of semantics and context-based definitions. I take a write-off for depreciation. That's not "income". That's a write-off based on the concept that capital was expended for an asset that is now worth less than it was when purchased - and likely will eventually require additional capital expenditures in the future. How you choose to exercise that write-off is a choice, but it's not reasonable to claim a write-off based on "lost value" on capital assets and simultaneously claim it as income.
As for "cash flow" -v- "income"? "Cash flow" is not an indicator of long-term ability to sustain additional debt. Many of the "RE investors" during the bubble-run were all "cash flow based", and heavily leveraged. All it took was one "oops" and the whole house of cards unraveled.
- mylittleComment
- Contributions:1
I think the current debt to income; at 38% to 42% requirement for mortgage is ridiculous. Imagine a family makes $200,000 annually can only have debt up to $88,000 but that family can very well live with $60,000 with $140,000 debt.
Where is the common sense? I disagree with the point "people who look for "no doc" loan is cheating the IRS or no able to afford the loan".
Think about all the good real estate deals require as little as 30 days to close. Getting a mortgage approved is a long complicated process. If "no doc" loan can shorten the time needed or reduce the complication to get a loan approved. I say "Amend to that"
Where is the common sense? I disagree with the point "people who look for "no doc" loan is cheating the IRS or no able to afford the loan".
Think about all the good real estate deals require as little as 30 days to close. Getting a mortgage approved is a long complicated process. If "no doc" loan can shorten the time needed or reduce the complication to get a loan approved. I say "Amend to that"
- TomPsillas
- Contributions:2
It is a crime that Low or No doc loans have gone away for the most part.
People think that us small businesses cheat the IRS.
That is far from the truth.
The reality is that, most businesses can take advantage of tax credits and the extra writeoffs against our taxes, in order to hire more people.
Not all lenders allow you to add back depreciation or good will amortization. These reduce income, but not cash flow.
I could be taking home double what a W2 worker makes, but because of the way the tax incentives work, my income could appear to be less.
Why should I be denined a mortgage, when I have a better chance of paying it back than most wage earners?
Also, as a software consultant, I could have a 4 month period every 2 years, where I am off contract. For that one year, my income may be down 25%; just enough to knock me below qualifying for a $300K home loan. But, in the current year, my income has shot up 30%, plus I saved $80K.
Why should I be denied a loan, when over the last 12 years, my income is over $120K, but only in 3 spots, it drops below qualifying ratios?
Also, I may have to file my return late, or amend it later, due to forgotten deductions or income. I may not have my return available when I apply for a home loan. Why should I be denied, if I can prove my income with bank statements and business financials reviewed by a CPA?
All these are valid reasons for No Income verification.
If I put 20% down or more, I should not be required to provide any documentation; whatsoever. All I should need is a credit score of 650 or more.
We just do not have any common sense left in the USA anymore.
We over react to any little thing that happens. This last downturn was caused by Corporate America outsourcing our livelyhoods offshore. Now, they want to crucify us.
Worst of all, they got bailed out by us and now we have to pay back our government for the mess THEY created.
It is a SHAM!
People think that us small businesses cheat the IRS.
That is far from the truth.
The reality is that, most businesses can take advantage of tax credits and the extra writeoffs against our taxes, in order to hire more people.
Not all lenders allow you to add back depreciation or good will amortization. These reduce income, but not cash flow.
I could be taking home double what a W2 worker makes, but because of the way the tax incentives work, my income could appear to be less.
Why should I be denined a mortgage, when I have a better chance of paying it back than most wage earners?
Also, as a software consultant, I could have a 4 month period every 2 years, where I am off contract. For that one year, my income may be down 25%; just enough to knock me below qualifying for a $300K home loan. But, in the current year, my income has shot up 30%, plus I saved $80K.
Why should I be denied a loan, when over the last 12 years, my income is over $120K, but only in 3 spots, it drops below qualifying ratios?
Also, I may have to file my return late, or amend it later, due to forgotten deductions or income. I may not have my return available when I apply for a home loan. Why should I be denied, if I can prove my income with bank statements and business financials reviewed by a CPA?
All these are valid reasons for No Income verification.
If I put 20% down or more, I should not be required to provide any documentation; whatsoever. All I should need is a credit score of 650 or more.
We just do not have any common sense left in the USA anymore.
We over react to any little thing that happens. This last downturn was caused by Corporate America outsourcing our livelyhoods offshore. Now, they want to crucify us.
Worst of all, they got bailed out by us and now we have to pay back our government for the mess THEY created.
It is a SHAM!
- Frank Maturo, "finance1online"
- Contributions:8
We have no doc loans and similar programs. Visit our no doc page at [deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]Also check out the stated income pages. All are very useful!
- Bart Gabe, "BartGabe"
- Contributions:75
STATED loans are available NATIONWIDE for high net worth borrowers (100K or more in the bank or liquid assets) up to 70% on loan amounts above 300K. Please feel to click on my profile to connect with me.
- Pasadenan
- Contributions:26042
$4400 per month income not showing up on your income tax returns? File an amended return and pay your back taxes so that it will show up when the lender files the IRS form 4506T requesting the transcripts.
Change in jobs? If you have employment continuity, most lenders only need 1 year of history for the new job, and the 4506T, recent bank statements, and a few months of paycheck stubs is sufficient.
Or are you "selling illegal drugs" for your "new job"? Are you already reporting that on your schedule C? Or is that a different business? File the amended return with either the revised schedule C, or the additional schedule C. The IRS doesn't ask and doesn't care if the business is "illegal", they only need to have you report the income & expenses and the "category" of the business type. If the income is reported to the IRS, and it shows up regularly in your banking transactions, there is absolutely no issue "documenting" your income.
Now if you are doing "all cash" transactions, and it never goes in a bank account, and the money is laundered to prevent tracing, that may be a different issue.
$6k per month for two "full time students" sounds like an impressive income to me. Where is all the "time" coming from?
Change in jobs? If you have employment continuity, most lenders only need 1 year of history for the new job, and the 4506T, recent bank statements, and a few months of paycheck stubs is sufficient.
Or are you "selling illegal drugs" for your "new job"? Are you already reporting that on your schedule C? Or is that a different business? File the amended return with either the revised schedule C, or the additional schedule C. The IRS doesn't ask and doesn't care if the business is "illegal", they only need to have you report the income & expenses and the "category" of the business type. If the income is reported to the IRS, and it shows up regularly in your banking transactions, there is absolutely no issue "documenting" your income.
Now if you are doing "all cash" transactions, and it never goes in a bank account, and the money is laundered to prevent tracing, that may be a different issue.
$6k per month for two "full time students" sounds like an impressive income to me. Where is all the "time" coming from?
- SteadyState
- Contributions:874
Borrowing money is not a right. Put yourself in the lender's shoes - despite the assurances that you will do well in the future there is No history to establish credit. Hopefully both of you will do well in the future and that is exactly when the lender will lend you the money.
- user432821
- Contributions:3
We are looking for this type loan because (20-30% down on 213,000) my husband recently changed fields from Naval Officer (he has a MS in Nuclear Engineering) to law (2nd year law student, already employed by a firm). And I have just re-entered the work force while attending nursing school. Our total monthly income is around $6,000 however the traditional banks will only count $1600 (approx 800/mo from the Navy Reserves and $800/mo from schedule C) due to the fact that we do not have 2 years in our current fields. Our only liability is a $513 payment on a property that we own. Credit is 809 and 700 (this due to a dispute of $75 over 2 years old). It seems ridiculous to us that we have this money coming in and have obvious upward income potential and cannot get a loan. Additionally, the home we want to rent has a carriage house apartment that has an existing 2 year lease bringing in $800/mo. And if an investor bought the home for this amount they could rent out the house and apartment for double the mortgage!
- Frank, "pako42"
- Contributions:31
I can't understand why some proclaim these loans as false or lying or impossible to get. These loans were offered about 20 yrs ago a EZ doc, without a problem to high net worth individuals at 70% maximums, who had 12 months+ reserves and a noticeable high earning profession that was verified. Yes, it got out of hand when it was 100% (or higher than 75% LTV) but if you bring it back to conservative & true underwriting rules (pre-1996) , it'll be a good program again.
- Frank, "pako42"
- Contributions:31
A few niche lenders offer them in California especially in the silicon valley area for those high tech employees, corporate officials and self-employed whizzes.
- Thomas Hall, "Tennessee Loans"
- Contributions:407
If you are looking for a high LTV loan then the answer is not likely. You'll need to specify what you are trying to accomplish.
- Kyle Ngo, "KyleNgo"
- Contributions:36
Rita,
Check with East West bank. They have a NINA program. Large down payment though. I believe its 50% LTV.
Check with East West bank. They have a NINA program. Large down payment though. I believe its 50% LTV.
- Rita A. Walker, "Rita Walker"
- Contributions:490
Why do you ask?
- Ofe Polack, "Ofe Polack"
- Contributions:3374
Not to my knowledge, they proved to be suicide for lenders and buyers as well.
- Pasadenan
- Contributions:26042
I can't imagine why anyone would want to do that. If you can't verify your income, you are either
1) Cheating the IRS
or
2) You can't afford the loan.
If you properly filed your income taxes, an IRS form 4506T requests transcripts of the IRS tax filing.. and is sufficient to verify income.
If you filed your taxes improperly, you can file amended tax returns using a form 1040X, and can pay the back taxes, interest and penalties.
1) Cheating the IRS
or
2) You can't afford the loan.
If you properly filed your income taxes, an IRS form 4506T requests transcripts of the IRS tax filing.. and is sufficient to verify income.
If you filed your taxes improperly, you can file amended tax returns using a form 1040X, and can pay the back taxes, interest and penalties.
- Derek Zasaretti, "Derek_Zasaretti"
- Contributions:571
Chances are slim to none.
Does anyone offer "no income verification" mortgages or "no doc loans?"
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