This week I realized that amongst my many other reasons to be grateful, reasons like on my last trip to California I loaded up on rice and coffee beans at Trader Joe's before prices shot up, I should be grateful that the majority of loan applications/inquiries I've had lately have been from borrowers who qualify with Full Income Documentation.

I received a referral from an existing client this week for someone who has found an amazing deal on a property they really want to move on NOW. This person was semi-retired but decided to go ahead and actively pursue a second career after all, launching in to it full bore last year. Eventually, payments will begin on the installment sale of the long-term business they retired from, but this person falls smack dab in to the middle of that exact situation the Stated Income Program was designed for. Now a Dream Property has come along, and tax returns will not reflect sufficient qualifying income.

There are still Stated Income Programs available to them. One will lend up to 75% of the purchase price with a credit score of 680 or higher. Another will finance up to 80% of the purchase price and allow 10% of the purchase price be financed in a 2^nd mortgage. Interest rates are up there, but not as high as private money. But, like many borrowers, cash is tied up in other places, and the losses of reallocating them in order to meet the down payment requirements will make for a pretty steep expense. They can bill out for balances due on work completed which will raise most of the 10% down, but the time frame needed will extend out the escrow period needed and Sellers want to close fast which is part of the reason the property is priced the way it is.

So, the question remains, how badly do they want this property? Bad enough to dip in to retirement funds? Penalties will be pretty steep, because they're too young to make withdrawals without steep penalties. Hmmmmmmmm.... What to do, what to do.

Don't wait too long to deliberate, because chances are the few remaining Stated Income Programs may fall by the wayside soon, too. I'm sure they'll return again one day, but how long they'll be gone is the question.

See you at the closing table!

  Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com