Need Cash?

These days there seems to be any number of angles that lenders have come up with in order to get you to borrow money from them. Most of these loan programs are specific in targeting home mortgages, and one of the programs that has been around for awhile is starting to make a come back. This loan program always gets more popular during prolonged economic downturns- the “No Stated Income” loan.

The standard financial requirements by lenders from borrowers are for complete and full disclosure of all income and debts. For most people, this is an easy condition to satisfy- the credit report generally discloses all their debt and paystubs and W-2’s prove their income. If a person is self-employed or paid by commission, then the lender requires the last 2 years of tax returns proving their net income.

When a borrower can’t prove or the lender disqualifies the income that is received, the borrower may be qualified for a stated income loan if all the other factors are satisfactory (credit, appraisal, etc). These types of loans are also known as quick- qualifiers, no peek, or no income verification loans. There is usually a cost involved, but it generally isn’t too expensive. In this loan scenario, the borrower must have employment and the lender will verify everything but the income.

Now comes the ultimate in a “quick-qualifier”. The borrower doesn’t reveal where the source of their income comes from at all! This is not only “no stated income”, this is “no stated employer”! The rate is higher than the stated income loans, but it targets the segment of homeowners who have been laid off, downsized, or fired, which appears to be growing almost daily!

There are some provisions to this loan that may not appeal to everyone, but if you need cash to help pay the bills until you “find steady employment” the loan program may be for you.

Fixed rates for conforming loans ($300,700 and under) as of 9/17/02 (a.m.) are:

30 year fixed: 5.75% (APR 5.98%) payments are $1,754.80/mo.
15 year fixed 5.125% (APR 5.51%) payments are $2,397.54/mo