Thursday, May 08, 2008

Return of the 10% Loans

10% loans are back for conforming loans (up to $417,000) and for some jumbo-conforming (up to $729,000) and jumbo (over $729,000) loans. Most programs, however, do require full documentation and good credit scores, and very few allow "stated income" documentation. I'm told that Countrywide has a 10% program without mortgage insurance. That's the first I've ever heard of that, although I'm also told the rate is higher. While we're on the subject, here's a clarification: although in recent months many people have referred to "stated income" loans as "liar" loans, that's not necessarily the truth. Most people who are w-2'd by their employers can easily get full documentation loans. Most folks (like me) who are independent contractors, have their own businesses, and/or receive 1099s instead of w-2s are "stated income" buyers as their income can change year to year.


  1. Anonymous5:29 PM

    It is a farce that self employed people can't document income, how do you think those people used to get loans? Banks statements and tax returns, the old fashioned way.

    Stated income is a license to lie.

  2. Anonymous2:26 AM

    Yes that's a fact that every year there is a decrease or increase of income. So that's why we need to return the 10% loans.