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

Incredible Turnaround and Stellar Customer Service. Chad and his team helped us get into our first home here in San Diego. When we first started the process we were skeptical it would even be worth applying. But Chad and his team walked us through the whole lending process with integrity and know how that surpassed our expectations. After helping us to pull together our pre-qualification, he and his team stayed at the ready. Before we even walked up to a home we were seriously interested in he had the data we needed over to us and our realtor. After finding the home we wanted to place a bid on, we were able to place a bid with a matter of a few hours. Then, after having our offer accepted, he had our loan package completed and the keys in our hands in under a month — I am pretty sure it was less than. Like I said, incredibly fast and professional turnaround. if you are looking for a motivated lender who can walk you though every detail and have your back every step of the way, Chad and his team at HomePoint Financial is your best decision. Recommend them highly!”

Great Job Chad Baker Team & Homepoint!
I was very impressed with the professionalism and quick response times from Chad Baker & his team during the entire process. I would highly recommend Home Point for mortgage needs. Great Job! ”

“Chad and his team are exactly who you want handling the financing of your home. Whether it be a new purchase or refinance, he and his team are one of the most professional, responsive group of people I’ve worked with. Buying a home can be very stressful and Chad and his team took all of the necessary steps to make the process as painless and as quick as possible. They are extremely knowledgeable, organized and have great follow through. You won’t ever be left wondering what the next steps are. I highly recommend him and will use him in all of our real estate transactions moving forward.”

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 LendUS. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2017. Got a question for Chad? Call (858) 353-8331 or submit your question online