Stated Income Home Loans Q&A: Chad Baker, Home Point Financial
HOME POINT Financial is excited to announce a brand new Stated Income Verified Asset program for 2015 with loan amounts up to $2 million for qualified borrowers for home purchase, refinance, and cash-out transactions. Below is a brief discussion of the program. For full details and program eligibility, please contact Chad Baker at 858-764-7825.
Is this a true Stated Income Home Loan?
Yes, this is a true Stated Income with Verified Asset home loan program for borrowers that have a minimum net worth of $750K. Tax returns are not used. Qualification is based on verified liquid assets. The program requires up to 6 months of bank statements, depending on the assets you have in order to verify monthly income.
How is my income verified?
If you state that you make $20K per month, the bank statements need to reflect minimum deposits of $20K. If deposits are $30K in one month and $10K in another month, it’s acceptable to average and state $20K. If you have over the minimum required assets, only 3 months of bank statements are needed. If you are at the bare minimum, you will need to provide 6 months. If you are using assets other than checking or savings accounts, only 2 months of statements are required for the account that holds the assets, but personal bank statements will still be required to validate the income you state on your loan application.
What are the Minimum Net Worth and Minimum Liquidity requirements?
The Minimum Net Worth requirement is $750K and can be established through a combination of all assets owned by the borrower, such as:
- Remaining equity in the home
- Cash in hand
- Retirement accounts (401K, IRA) – 70% of current balance. If borrower is over 59.5 years old, assets can also be used towards liquid asset requirements.
- Cars owned
- Jewelry and personal property
- Business assets – Validated by a P&L self-prepared by the borrower.
- Business accounts – 33% of money in corporate accounts can be used for proof of liquid assets. 100% is credited towards Minimum Net Worth requirements.
What if I have the liquid asset requirements, but the bank deposits over 6 months do not support my stated income? Can I still be considered?
If you have the assets in an investment account for example, but your personal bank statements do not show steady deposits, an exception can be granted on a case-by-case basis.
I want to purchase a million dollar home. How much in total assets do I need to show?
With a minimum 700 FICO Score, you need to show $250,000 in liquid assets. This is after the down payment has been made. For example, on a $1 million purchase, you finance $700K and will need $550K in the bank ($300K for down payment and $250K for assets after close):
Purchase price $1,000,000
Down payment 300,000
Liquid assets 250,000