Stated Income is ALIVE!

Prior to the 2008 mortgage melt down, stated income or no income document loans were the norm. Flash forward to present day (September 2017) and they are rare. Very rare. So, what is stated income and who qualifies? Here is a quick breakdown of stated income and who qualifies to use it.

Stated Income*

• Assets are a must. 6 months principal and interest required in assets/reserves for owner-occupied purchases <$1 million, 60% loan-to-value. 12 months assets required for greater than 60% loan to value, less than $1m purchase price. 
• Minimum FICO credit score 700.
• STATE your income and provide assets in the form of bank statements.
• Rates and loan programs are competitive. Since there is more risk involved for the lender based on not using a borrower's income documents (no tax returns, W-2's, pay-stubs required), the loan program offered is an Adjustable Rate Mortgage (ARM). Fixed for a set period 3, 5, 7, 10 years, adjustable annually thereafter with a cap and amortized over 30 years. Inquire with a TRU Financial Services loan officer for details on current rates.
• Primary, second home and investment loans available. 
• U.S. citizen, permanent resident, non-permanent resident, and foreign nationals are eligible to apply.

*Stated income parameters are subject to change. Not all borrowers will qualify. Consult a qualified, licensed mortgage professional.

The stated income loan product can be used to assist borrowers that are self-employed or earn bonus and commissions, subcontractors and W-2 wage earners. A FREE consultation with a loan officer that offers stated loan products could determine eligibility. Many of the same loan document requirements minus income documentation are required for these loans. 

From Wall Street to Main Street: Scaling back Dodd Frank

What is Dodd Frank and Why it Matters

In a nutshell, Dodd Frank was passed by Barack Obama in 2010 as part of a Wall Street Reform and Consumer Protection initiative after the financial crisis of 2007-2008. It was the largest overhaul to our financial regulatory system since the Great Depression. Pretty significant.

Some of the main pieces to Dodd Frank include more transparency and accountability for large banks and financial institutions. Essentially, no more bailouts. The bailout during the financial crisis of 2008 cost the United States Treasury Department $700 billion. This was not the biggest bailout the U.S. made, it's still ongoing. According to TARP, the U.S. committed, $16.8 trillion with $4.6 trillion already paid out leaving the banks to big to fail. Read more here on the bailout. 

What could happen in repealing some regulations of Dodd Frank?

• Greater financial lending for smaller community banks and institutions.
• Less regulation and oversight of bank activities.

In a nutshell: Arguments for and against include, more lending could mean increased access to credit and mortgage loans, although this could leave the industry open to repeat history and the risky lending of past days, with taxpayers footing the bill for bailouts. Stay tuned.