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
Finance                            700,000
Down payment               300,000
Liquid assets                   250,000

Testimonials

“Chad and his team got me funded in less than 30 days, completing a deal that another broker fumbled around with for almost 90 days. Effective, efficient and excellent communication skills. Outstanding professionalism.”

“Thank you for all the hard work (even on weekends!) you and your team have devoted to seeing this through in a very efficient manner. It’s been an easy process for me and, you and your team have been a delight to work with.”

“Hi Juliann and Chad, I wanted to take a moment and thank you guys for what would have been impossible for us to do without you. We wouldn’t have our keys in hand if it had not been for your help in navigating the financing, and Juliann’s perseverance in getting the rest of the players in the transaction to deliver. Out of everything, our interaction with your office has been a highlight – and your customer service has been beyond everything we’ve experienced in the real estate industry. Is there a way we can provide any reviews, ratings, testimonials, or other statements that can express to your potential future customers how much you guys do to make the customer’s life easy? Please let us know how we can share our great experience with you to the rest of the public. Whether we refinance this under a VA, or get in a bigger/better house in a few years, we’re not going to go anywhere else for financing. We are customers of yours as long as you are in business. Thanks again for getting us in a house!”

I hope you enjoyed reading this article. It's my goal to keep you updated with the latest real estate mortgage news. I'm proud to provide you with 100% original and unique content. Subscribe now to get high quality real estate mortgage content and articles delivered directly to your inbox. Chad Baker is Regional Manager for Cross Country Mortgage. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2019. Got a question for Chad? Call (858) 353-8331 or submit your question online