Here's the thing about hard money. I have had a loan sitting at an investor for 2 weeks. They are so busy with FREE AND CLEAR property refinances that they can't get to my purchase. But here are their new customers. SELF EMPLOYED people that have high credit scores that can't get a loan anymore because of not enough "qualifying income".
I been in business for 17 years and I seem to remember that stated income and lite doc loans were ONLY for self employed people that could prove that they had a viable business verified by their accountant and prove cash flow on their bank statements by amount of deposits and" real" deductions.
The only alternative for them now is HARD MONEY/PRIVATE INVESTORS at 9-15% interest rates with a 50-70% LTV. A no brainer for hard money guys. BTW, found a different private investor and closed the deal in 2 weeks with 50% LTV from the tax roles, no appraisal, 10% interest, 30 yr fixed and no prepayment penalty. It is what it is.