The last year and a half or so has seen a amazing chain of events happen in the New Jersey refinance industry with the shutting down of hundreds if not thousands of lending institutions and the elimination of many of the so-called “exotic” products.
When the dust finally settled only the most persistent have remained well positioned and able to lend to qualified families. We are proud to be among those standing tall and offering the very best of what is available today for the consumer. Along with standard New Jersey usda mortgage that we have available, we are among the few remaining lending institutions that can offer Stated Income Verification mortgages to our highly qualified New Jersey borrowers.
What sets apart “No Income Verification” from “Stated Income” loans?
The answer is that real “No Income” allows for the verification of a borrower's employment while allowing the income section of the application to remain [spin]empty. A “Stated Income” mortgage on the other hand, requires a home buyer to “state” an income to be used on the 1003 form, but not be verified. It must however, coincide for line of work that the home buyer's is in. In both cases, fund verification is a must and must be significant enough to warrant approval of the loan. There is no set calculation as only common sense will prevail. It is important to note that these products are for owner occupied properties ONLY and the person's MUST be self-employed or retired.
What is the upside of going with a “No Income” or “Stated Income” loan?
With the changes that have occured in the industry there is not a higher level of automated underwriting approval that allows for income to be accepted as stated therefore, the only selections available for the self-employed or retired borrower are those previously mentioned. Stated Income loans are allowed up to 70% loan to value (LTV) while No Income loans are limited to 60% LTV.
What make these products desired as well is that the interest rates are quite similar to Fannie Mae and Freddie Mac income verified mortgages. The add-on to the interest rate is .375% for No doc and .25% for Stated Income mortgages. To be more specific a 30 year fixed rate as of this blog posting would be 5.50% up to $417K for No Income and 5.375% for Stated Income. These programs are available for our 5/1, 7/1, 10/1 ARMS as well as our 10, 15 and 40 year fixed.
If you have been having difficulty proving your income with you normal mortgage company then a no income documentation mortgage may be just what you have been hoping for.