We still can close Stated Loans.  These do not meet Fannie/Freddie guidelines. This is a niche product held in-house by our investor to reward self employed borrowers that have exceptional credit.  Borrowers will now have to put 25% down on these purchases and will have to meet the following criteria:

 - Must be self employed and provide documentation that they own 50%+ of the business

 - Provide CPA letter certifying that borrower is self employed, current on taxes and has been a "____" for 'X" of years.

 - Validation that business exists through independent search of the business name via phone book, internet, etc.

- Must have minimum credit score of 700+ middle FICO score & have 3+ open tradelines on credit, each with a 12 month current history and no lates.

- Borrower must sign 4506 or 4506T - that they have filed tax returns for last 4-8 yrs.

- No bankruptcy's in last 5+ yrs.

- Total DTI cannot exceed 36%

The one investor that buys these loans holds these in-house.  This means that they can cancel the program at anytime.  If you are a homebuyer and need one of these loans, be sure that you can meet all of these requirements, no exceptions. 

Interest rates are about .5% above Conventional Market pricing.

Call me if you need one of these loans in Mississippi.

Molly Lionberger, Assistant Vice President, First Bank and Trust of Mississippi.