Posted by Bluemoonray on 1/22/09 11:47am
Msg #275301

Stated income loans?

Anyone know a company still offering these. After seeing all the great home deals in Ca.-I decided to jump in. Being self employed has made it tough to get financing-just wondering if they are out there?? thank you.

Reply by Lee/AR on 1/22/09 12:17pm
Msg #275305

Try checking at a Mortgage Broker Forum where somebody is always looking for something.
Might find a lead to a co. there. http://www.brokeroutpost.com/loans/rssfeed.asp
Link may not work. Try Google.

Reply by Glenn Strickler on 1/22/09 4:37pm
Msg #275338

You may be self-employed, but you still document your income through records you keep and your tax return. I have done many purchase closings on repos for people who are self employed. Of course, if you have a lot of cash that you have earned "under the table" then you are going to have a problem. From what I have experienced lately, you do have to document somehow not only your income, but also where the down payment came from. I have not seen a stated income home loan for over a year.

The IRS is targeting the underground economy, so if you do have income that you have not claimed on your tax return, you may not want to call attention to yourself. But of course "Do you feel lucky?"

Reply by PAW on 1/23/09 7:40am
Msg #275367

I'm doing a SISA (Stated Income, Stated Assets) closing tomorrow. The borrower's credit score is 810-830. According to the property ownership list, they own multiple properties, some income producing, some retail spaces and some commercial holdings. Assets can be verified if necessary, but apparently weren't, other than a superficial look at the public records.

Reply by Blueink_TN on 1/23/09 9:26am
Msg #275372

We just refinanced our home which we purchased a year ago. It was the easiest & quickest transaction ever. No verifying income, no appraisal, minimum closing costs. It was with the same bank and we didn't take cash out - just refi-ed to get a better rate (dropped almost 2%). Took about 10 days total.

Reply by John_NorCal on 1/23/09 10:23am
Msg #275375

Good point Glenn....

**The IRS is targeting the underground economy, so if you do have income that you have not claimed on your tax return, you may not want to call attention to yourself. **

Some of the continuing ed seminars that I have attended have talked about auditing techniques regarding the "underground" economy. They are doing "life style" audits for one thing. Looking at assets justified by reported income. They are of course looking at inflated deductions for business such as personal items being charged off to the business. A client of a colleague of mine has gone through a harrowing audit for that very reason. I'll benefit because I'll pick up a new bookkeeping client as well as a tax client. I'm picking up another tax client because their previous preparer has opened them up to red flags by reporting losses with no income on a Sched C instead of properly running them through the LLC that they have.

Moral of the story: Keep good records, use a competent preparer and don't try to push the envelope!

Reply by Blueink_TN on 1/23/09 12:25pm
Msg #275399

Question for you, John

Have you heard anything about not having to pay the 10% penalty on 401K's if they were early withdrawn in the year of 2008? I thought I read something about this but now I can't find any info on it. Was I dreaming?

Reply by Sha/CA on 1/23/09 1:30pm
Msg #275408

I'm doing an SISA tomorrow. Quite surprising, but still available I see, contrary to what "they" say. The interest rate is at 6%. It is with Mountain States Mortgage Center in Sandy, Utah. Ph # 801-576-1000. Let me know how it works out for you. I may try them out too.