Stated income loans for investors getting tough

By Joe Davis

Real Estate Agent with Indiana Commercial Realty

March 10, 2008 04:48 AM

Stated Income (Non Owner Occupied)

In the past 30 days two more major lenders have eliminated stated income programs for investment properties all together. Although there are still sources for stated loans, they are becoming increasingly difficult to find and even more difficult to close. Lenders that still offer stated income programs for investors have become very strict, and in many cases if the loan is not structured perfectly it will be rejected. Guidelines are especially stringent for full time real estate investors and W-2 employees. Under current market conditions it would not be uncommon for other lenders to follow and limit or remove stated income products on investment properties for some time. Now is the time to act if you are investing using stated income loans.

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Chuck Mixon

The Keyes Company - Cutler Bay, FL

Cutler Bay Specialist, GRI, CDPE, BPOR

Here in South Florida the loans go by another name "Lier Loans", because the wide spread abuse the loans have caused in this market. It is common i certain areas in Miami-Dade to see 50-60% or more of the home in the area in preforclosure or auctioned. It is about time that loan doc's are fully supported and not just stated.

We have a long way to go to get out of the woods but the lending process is the first step. Without action from the lenders the corrections the market needed were not going to happen. Cheers to a speedy recovery!

Mar 10, 2008 05:01 AM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

This is so true! Try getting together with a broker that has the freedom to use Wells, Chase, US Bank and GMAC. This way, when one tightens their guidelines, you've got a broker that has the others to turn to until they change theirs.

Mar 10, 2008 05:02 AM

Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv

REISA - 317-663-4173 - Indianapolis, IN

Trying to place a couple right now to a well qualified buyer. 800 mid, 1.8m in assets but he is not giving up income docs.

I get it done but these are so hard to do these days.

Thanks for the post

Tony

Mar 10, 2008 05:25 AM

I think Wells is still most aggressive on LTV.

Mar 10, 2008 05:29 AM

Molly Lionberger

Salisbury, MD

Wells Fargo cancelled their Mortgage Express Stated Program in mid February 2008. Countrywide just increased LTV on their Fast & Easy Product. Lock and close asap on Stated Loans folks!!!!

Mar 13, 2008 12:56 AM

Stated income loans for investors getting tough

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Joe Davis

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