Stated Income Financing

The Federal Reserve has acknowledged it's idea of "limiting" stated income loans. According to published reports Ben Bernanke will make his plans public before enacting it. With this breaking news coming forward I at least wanted to give my two cents worth in regards to "stated income" financing.

First, stated income financing HAS it's place in the housing and mortgage market. With that being said there has to be certain guidelines that must be met in order to qualify. For instance, a minimum score of 680, at least 5% down, at least 3-6 months reserves, and a good and established credit history.

Stated program financing is extremely helpful for someone who does not claim all their income, however has "justification" for qualifying for a "stated" loan; (i.e. 680 score, reserves, low dti etc.) There is a needed niche for this type of financing in the market place as I see it everyday. Should there be the type of loose guidelines seen in the past? No. But to completely eliminate this program is a complete disregard to a substantial niche of clients that both qualify and have verified the "means" of repayment.

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