Refi Question

[HouseHunting]

I am considering refinancing my home, I have heard about and am considering going with a stated income loan, what does this mean exactly?
What kind of documents are they going to want to see? I realize that the rates will be higher, but it sounds like a lot easier of a loan to get done.

Does anyone have any advice on this subject? Thank you.

Welcome to the forum and thank you for joining....

Yep and they are not doing them any more...they are gone with the advent of this debacle, FNMA and FHLMC started cutting them out last week and we have seen the last of "liar" loans.

The losses associated with this type of lending are huge and as such they were ruled irregular and illegal by the Government late last summer and fall on all sub-prime loans and recently as last week out of all Agency Portfolio products have cut the program out of the product line. We are going back to the old fashioned lending program....prove your income, it counts and if you do not make enough, then, we are not lending the money.

That was how it was done from the beginning of time and that is how it is going to be going forward for a long time. I hope we never see this stuff again.

If you do find a Stated Product you will be paying huge money for it, there are no secondary markets to buy them any more so the costs are going to be huge and the terms very ugly. So, be very careful and read everything very carefully or you may be looking at problems very early in the loan with issues that the members of this forum are currently experiencing.