Some of you have asked about SISA (Stated Income/Stated Asset) loan programs. Let's have a look:
Scenario:
Owner Occupied (O/O), Single Family Residence (SFR) or Condo
FICO = 680 (minimum requirement)
(1) One Loan at 95% Loan-to-Value (LTV)
Loan Amount = $396,150
Stated Income/Stated Assets (SISA)
Pricing:
30-Year Fixed
6.375%
Payment = $2,471.46
6.519% APR
LPMI (Lender Paid Mortgage Insurance) is included.
5/1 Interest Only
6.5%
Payment = $2,145.81
6.645% APR
LPMI (Lender Paid Mortgage Insurance) is included.
*Disclaimer: Rates & terms are subject to change in accordance with fluctuating market conditions and are also subject to change upon borrower qualification. Call me to verify current pricing. World Wide Credit Corporation is an Equal Opportunity Lender.
With Reference to PMI:
If a borrower should decide that he/she wishes the alternate route of BPMI (Borrower Paid Mortgage Insurance), that option IS available. Please contact me for further assistance in calculating PMI.
For further information on PMI, reference:
Mortgage Insurance & Tax Deductibility
Underwriting (UW) Notes:
The following information is applicable to Stated Income Loans for both W-2 and Self-Employed borrowers.
Income on Stated Loans should be deemed reasonable by the UW. Your lender will check undoubtedly check your borrower's eligibility. However, should you desire to get a head-start...as a reference guide, you can research a borrower's employment on one of the following salary websites:
*Note: Some underwriters DO NOT consider www.salary.com to be a valid resource.
If the income stated is in line with the positions and income noted on either of these sites, it will make for a solid underwriting decision. Supporting documentation from these sites, amongst other information will be printed and added to the loan file upon submission.
4506 Request of Transcript Form IS a Prior-to-Funding (PTF) Condition but it is executed only on a case-by-case basis. If for example, the income appears to be over-stated for what the typical salary is for the borrower's stated position, then a 4506 will be executed. Underwriting asks that you submit the loan package with a signed 4506...they will inform you whether it will be executed or not.
Loan-to-Value (LTV) = 95%: for areas considered Declining Markets, deduct 5%. In certain instances, this deduction is being implemented on a case-by-case basis. Stronger files with good compensating factors might not merit a deduction. More an more lenders are adopting this policy since it is a Fannie & Freddie sponsored change.
Additional Note for Self-Employed Borrowers:
Self-employed borrowers should be prepared to write a strong letter of explanation (LOE) with reference to how the business is operated. Information such as:
- Number of Clients
- Services Offered (Specialties)
Editor's Note:
The information provided here is not meant to make you an expert in Home Financing. It is provided for you as a resource in answering the type of financing that is available under current market conditions and in helping you anticipate what requirements underwriter's are looking for. For questions on this particular loan program or to inquire about additional loan programs, contact me at 323.810.2175.
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