Stated Income Loans

Some of you have asked about SISA (Stated Income/Stated Asset) loan programs. Let's have a look:

Scenario:

Owner Occupied (O/O), Single Family Residence (SFR) or Condo

FICO = 680 (minimum requirement)

(1) One Loan at 95% Loan-to-Value (LTV)
Loan Amount = $396,150

Stated Income/Stated Assets (SISA)

Pricing:

30-Year Fixed

6.375%
Payment = $2,471.46

6.519% APR

LPMI (Lender Paid Mortgage Insurance) is included.

5/1 Interest Only

6.5%
Payment = $2,145.81

6.645% APR

LPMI (Lender Paid Mortgage Insurance) is included.

With Reference to PMI:

If a borrower should decide that he/she wishes the alternate route of BPMI (Borrower Paid Mortgage Insurance), that option IS available. Please contact me for further assistance in calculating PMI.

For further information on PMI, reference:

Mortgage Insurance & Tax Deductibility

Canceling Mortgage Insurance

Underwriting (UW) Notes:

The following information is applicable to Stated Income Loans for both W-2 and Self-Employed borrowers.

4506 Request of Transcript Form IS a Prior-to-Funding (PTF) Condition but it is executed only on a case-by-case basis. If for example, the income appears to be over-stated for what the typical salary is for the borrower's stated position, then a 4506 will be executed. Underwriting asks that you submit the loan package with a signed 4506...they will inform you whether it will be executed or not.

Loan-to-Value (LTV) = 95%: for areas considered Declining Markets, deduct 5%. In certain instances, this deduction is being implemented on a case-by-case basis. Stronger files with good compensating factors might not merit a deduction. More an more lenders are adopting this policy since it is a Fannie & Freddie sponsored change.

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