Question:

Can I take a loan with stated income underwriting only, if my score is 620?

Answer:

Recently, given the entire subprime loan crisis most lenders will require at least 660 for a mortgage with stated income underwriting and usually the maximum LTV allowed for even owner-occupied properties may be up to 80-85%. It depends, though, on your personal circumstances what score you'll need.

Before the mortgage crisis stated income underwriting guidelines weren't as high.

Stated income programs have a lot of variations - Stated Income with or without Asset Verification, No Income with or without Asset Verification, and the ultimate NINANE (NINJA, No Doc) home loan - no verification of income, assets and employment at all.

Previously, there would've been lenders who would do a No Income Verification with 100% LTV and with a 600 credit score. A CPA letter or 2-year employment verification would've sufficed for the lender. Rental or mortgage history with at most 1x30 late payment for the previous 12 months would usually be a requirement for this program.

Stated income mortgage loans for investors have lower LTV and demand even higher interest rates.

Currently, if you are looking for loans underwritten for reduced documentation with 620 score, high LTV and prime rates you are unlikely to find one easily. However, do the shopping - one never knows where the rabbit pops out.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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