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What do I need to take care of before I try to get prequalified? What will they ask me? Should I try to pay off the student loan first? Credit cards are paid off, no car loan, nothing else. This is my first home. Been in this apt. for 7 years. Will they ask for references, if so how many? I’m self-employed. Thanks so much! Gap wouldn’t even give me a Gap card because of the student loans which seems ridiculous given my credit rating. Rating will probably be at 720 or 725 by the time I apply for the loan in 3 or so months (hopefully). And how do I choose the lender?
And…my checking account shows an average monthly income of about $ 3500 -$ 4000 a month. The homes I’m after are in Iowa and only about $ 85,000.
Regarding deliquency on the loan. I was sick many years ago (8 now) and it was deliquent then, but my Dad has taken it over and has been paying it off faithfully for several years now and I’ve been doing the same work for 7 years now.
Re: one of the responses…They don’t request tax returns for a stated income loan do they?

10 Thoughts on Can I get a stated income loan with a rating of 710 w/ 10% down and $6000 in student loans still unpaid?
  1. Reply
    yankee girl
    February 5, 2014 at 5:13 pm

    well i dont think so

  2. Reply
    February 5, 2014 at 6:07 pm

    If you are delinquent on the student loan, that’s a problem. If you are current on the payments and just have a balance, that is ok. The other thing which matters on a stated income loan is how long you’ve been in the business – if you have been doing it for several years, and can document that, it helps a great deal. One way or another, you’ll get a mortgage – only question is how much it will cost you. Shop it to several mortgage brokers and banks, see who does best. My last mortgage came from a local bank’s mortgage division, and was sold to a big national lender – but the local bank did a great job of making it work.

  3. Reply
    February 5, 2014 at 6:22 pm

    sounds like you will get a great loan. I’d go to a broker since they can work with many investors to get you the best deal. although, if you have a relationship with an existing bank, stop there too – you never know. The government has set up the home buying process to allow buyers to shop around. Even if they as for an application fee you can rescind and get your money back. Regarding your sutdent loan – it’s so small I wouldn’t bother paying it off. Just make the installments. They are small and good for your credit score. They’ll want two years tax rtns, banks statements for the last 3 months and that’s about it. Congratulations!

  4. Reply
    Reginald Whitcomb
    February 5, 2014 at 6:57 pm

    The student loan shouldn’t be an issue, your payment history as stated will show your ability to pay and that you have been faithful in keeping it current now.

    Your income is sufficient as stated to easily pay for and maintain a mortgage of the amount you are looking for.

    Being denied for a GAP card also sounds a little silly to me. But I would advise you to NOT apply for ANY other credit cards or loans until you have gone through with the mortgage loan process, as your credit rating is above average and could take a small hit, which might affect your interest rate options.

    They shouldn’t need to ask for references, it has nothing to do with your loan qualifications. But you may need to prove income through bank statements, a letter from your CPA (or yourself if you handle your business’ taxes), etc…

    I’d work with a mortgage broker / planner / consultant because they will be able to shop your loan around to several different lenders and find you the best program options out there for your situation.

    Good Luck

  5. Reply
    February 5, 2014 at 7:30 pm

    By “stated income” loan, I assume you mean one in which you are not required to prove your current income by providing tax returns or pay stubs. The main requirement of these types of loans is a larger than usual down payment. I am certain you can get a loan – but probably not a no income verification loan with only a 10% down payment. 30% or more will probably be required.

    Check into first time home buyer’s programs. I am not sure what Iowa has, but here in New York there is a state agency (SONYMA) that guarantees loans for first time home buyers and has VERY attractive fixed rates and very low (usually 3%) down payment requirements.

    Good luck!

  6. Reply
    steve n
    February 5, 2014 at 8:22 pm

    There are many mortgage programs available for your specific needs and your parameters. The 10% down programs for owner occupied purchases using stated income are currently asking for a 640+ credit score and requires either a CPA letter or business license showing you’ve been woking at that job for a minimum of 2 years. Contact a local Mortgage Broker who should have no problem helping you.

  7. Reply
    February 5, 2014 at 8:29 pm

    This sounds like an easy loan to me.

    SISA is a program offered by my nationally known mortgage company for years, and we offer it to borrowers like you that have a good credit score and a decent down payment at CURRENT CONFORMING LOAN RATES as if you were proving everything!

    Probably could get it closed in as little as 10 days too.

    Feel free to contact me…

    Good luck!

    OH–and as to your question of how to choose a lender? Obviously you must feel comfortable with your loan officer, and then, you want to pick the one who will work with your needs, offer you the most competitive rates on the most diversified products, and that has the least amount of junk fees assessed to your closing and settlement. Sounds JUST like a company that I know… LOL!

    Again, best of luck!

  8. Reply
    February 5, 2014 at 8:57 pm

    You probably can, however, the student loan is a federal debt, it may need to be addressed. Ask your loan officer.

  9. Reply
    February 5, 2014 at 9:09 pm

    With your credit score being in the 710-720 area you will not have much of a problem getting a loan of your choice. Find a good mortgage “Broker”. Even though you want a stated income program your broker might want to make a decision as to which might be better for you, I would so I would still want proof of income and other items, might be that he has an investor that will take you with your income. Your mortgage broker will chose the best lender or investor for your credit and credit scores.

    After you have contacted the mortgage broker he will have you complete an application, pull your credit report which will decide the type of loan you would be qualified for. Based on your income and debts on your credit report will determine the amount of home you are qualified to purchase. If you and the broker decide to use or not use a no doc loan program.

    Student loans are not a problem as long as they are current or only a few months delinquent, a letter of explanation normally will cover a few late payments. They will ask for no references, might send a letter to your land lord about your payment history,but if you have cancelled rent checks that should cover that.

    After your pre-approval (Not Pregualified) this mortgage broker will then introduce you to a real estate person, if you don’t know one who will then assist you in finding a house for you to purchase. Once you have found the home you want the real estate agent will complete a purchase contract to be signed by you and the seller, which he will give to your mortgage broker. The mortgage broker will then order an appraiser to prove the value of the property. He will also open escrow(closing agent) to complete the transaction.

    He might request additional information or documents from you to finally close the transaction, but this is normal. He will order your loan documents to sign. You first payment should be due in about 30-45 days from closing.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  10. Reply
    February 5, 2014 at 9:12 pm

    If you would like to email me I can perhaps help with the details.

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