It's FB Friday
Try this one on for size. Borrower has a mortgage balance in the mid-high 600k range. They have an appraisal that is a few months old, that uses even older comps, and they need to keep the value in the mid 800k range to get enough cash out at 90% LTV. The borrower needs to go stated, and get as much cash out as possible. So, we have stated income, an appraisal that is going to get whacked faster than somebody that crosses the Soprano family, and a FICO that is hovering around the high 500's low 600's. Oh, did I mention they have a few mortgage lates the past year?!?!? OOPS!!! I can't and won't be able to help this person. But you can bet that somebody will give it a shot, especially with a "large" loan amount like that. I just hope that loan doesn't end up packaged in the MBS in your retirement account....
This will be a short one. Borrower with a FICO in the 530-540 range wants to do a stated, non-owner occupied, purchase, of a 4-unit complex, in the $650k range. Yeah, I laughed too when I got off the phone, and you thought Wedding Crashers coming to DVD this week was going to be the funniest thing you were gonna see. I honestly don't think there is a lender that will make that loan, so that is a good thing.
That is about it for any really good scenarios. The rest are your run-of-the-mill stated deals. Nothing special, nothing new, just business as usual. I'm not the only one seeing this out there. Even some of the other Account Executives and brokers are beginning to scratch their heads at the loans people are trying to get.
And finally...a question for your accountant:
Since I used stated income on my loan application, can I use stated income on my taxes???
disclaimer: after reading some of the replies, that is NOT a question I heard from anybody. Just something to think about in the new era of "stating" everything financial (income, reserves, rental income, etc.) when it comes to getting a loan.
Sorry...I'm not in the mood to sugar-coat the financial stupidity that is/has been going on with this "credit bubble".
Have a great weekend!!!!