Question:

Is stated income 100% financing still possible?

Answer:

Yes, it is. Stated income 100% financing is possible to obtain for good credit borrowers. And while a 630 with Full Doc could qualify you for a prime rate, stated income will require at least 680 to allow 100% financing in most cases. Even though guidelines will differ among lenders, mortgage rules have been tightening and it is likely to be more difficult to get 100% funding with Reduced Documentation.

Is 100% stated income financing too difficult to obtain?

100% financing is getting tight to people who want to go Reduced Doc, this is a fact. However, if your score is somewhat over 630, a mortgage professional could really help you clear some unneeded stuff on your credit report so that you can do stated income and receive 100% financing at that.

Have in mind that underwriters will be extremely careful going over your application - quite more than they used to some time ago. Many underwriters have lost their job approving loans they shouldn't have. It is expected they won't repeat this mistake again. Thus, credit score requirements are higher, and required documentation even with reduced doc may be substantially higher. Also, with stated income 100% financing you may be expected to show greater reserves and rates can be too high, especially if your credit is below 700.

Even if 100% funding sounds great, if you put 5% down, you will be much better off. Most lenders easily do 100% financing with Full Doc. However, Reduced Doc up to 95% LTV is much easier to find, and cheaper, compared to 100% stated income financing.

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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