No Documentation Also Called "Stated"

When the Berlin Wall fell years ago, it was obvious that there was a revolution afoot. But when walls come crashing down in banks, mortgage companies, and loan companies few notice. Let me explain to you the revolution that is underway in the loan business and show you how you may benefit.

Different Way to Qualify
Traditional loan business has changed radically. For years lenders looked only at your income and credit rating to determine your ability to repay the loan. If you made enough money to qualify and your credit was without more than a few minor blemishes then of course you would qualify. If you were outside these parameters you would have to resort to another tier of lender with much worse rates.

Now the rules of the game have changed. Sure if you have great credit and sufficient income you can still qualify for the very best fixed rate loans. But what if you fall outside the rules? Either your income is insufficient or your credit has more than just a few blemishes or your rating is not high enough. What then? This is where the revolution in lending is making people very excited. If your credit is excellent but you either have insufficient income to qualify or you prefer not to supply proof of your income you can still borrow up to 95% of the price of a home. Even if you have very good credit and you do not want to supply any more information than your name and social security number you can still borrow 90% of the price of a new home.

What about credit problems? Can I still get a good loan? Now we know that if we have excellent credit, the sky is the limit, but what if your credit is not excellent or good, but fair. What can you expect? Again, the loan revolution is making its way toward you. Many loan programs lend even to 100% of the purchase price of a home if you have some credit problems. If your credit has more than a few blemishes than you can usually still do a loan with a ten percent down payment. Even if your credit is something you rather not mention, you may be able to borrow up to 85% of the purchase price of a home.

What are the rules? It may be hard to discern the rules of this new lending game, but I can boil them down for you. If you have great credit you can borrow money at good terms, even if you have no down payment or do not show proof of your income. If you have less than good credit you can still borrow up to fairly high percentage of your purchase price or appraised value. The main issue is whether you have the income to pay the loan.

The final rule is if you think you fit one of the above categories do not rule yourself out of the lending game. Call a qualified lender.

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