The word on the street is this: in the first week of April, Stated Income Loans will cease to exist.
As it stands, the PMI companies will begin refusing to insure such loans. PMI is required when your downpayment is less than 20%. The PMI or “Private Mortgage Insurance” protects the Lender for the 20%.
We don’t yet know if you’ll be able to find a “Stated” Income Loan if your downpayment (or equity position if you’re refinancing) is equal to or greater than 20%; this is just the preliminary word “on the street” as it were.
I’ve said it often: FullDoc All The Way Baby!
That’s the best and right way to qualify for a mortgage you can afford; end of discussion.[tags]Full Income Mortgage, FullDoc, No Income Verification, mortgage qualification, downpayment, Stated Income Loans ,PMI[/tags]