I heard a rumor yesterday that stated-income loans may be available again after the first of the year. These are loans eliminate the verification of income requirement, and were popular until the real estate market started to go south. No lender has made these for many, many moons. I'm told the requirements, such as FICO scores, will be much stricter and there will be no 100% stated-income loans.Opinion: the jury here is out. This will be good for many folks in the entertainment industry and other industries here in L.A. who have decent incomes, but are 1099'd instead of w-2'd because they go from job to job. The downside is that many folks will also take advantage and wildly overstate their incomes in order to get homes they can't really afford.
I think this is great news. IF lenders are smart they will require large (such as 30%) down payments and good credit. Then these loans are a no brainer.
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