Stated Income Loans: The Unexpected Victims

February 21st, 2010 | Category: Lenders

It wasn’t all that lengthy ago that a busboy could walk into a mortgage lender, say he made $100,000 per year and get a home loan based on that number.

The loan programs that were available had all different kinds of names, but they all pretty much did the same thing — allow public to get qualified for a mortgage without proof that they could qualify.

Fast forward to today’s mortgage market. Guidelines are tighter than they have been in years, loans are tougher to get and folks are generally less apt to go out on a limb when financing their home.

And stated income loans are ~~virtually~~ non existent.

Who is hurt by the fact that stated income loan options do not exist?

Generally speaking, I would say that

the small business person is hurt by not having stated income loans available. And what is even worse – now that virtually every lender requires that you allow them to verify your tax returns with the IRS, I suspect that there isn’t a stated income loan program anywhere on the instant instance horizon.

So whether you are a small business owner and you have an accountant who helps compose certain that you are minimizing your tax liability to the IRS, whether you didn’t already know that that was impacting your ability to get a home loan — now you know.

One of the unexpected victims of the elimination of the stated income loan program appears who they were designed for in the first place:

The small business owner.

Orginal post by Justin McHood

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