No Income Mortgages

Due to new laws passed in New York, stated and no income fixed rate loans are NOT AVAILABLE for conforming loan amounts...... currently single family loans up to $417,000. Some adjustables may be available, you must call on these loans.

No income verification was originally designed in the mid 80's for self-employed borrowers who needed or wanted to avoid the cost and hassle of the paperwork (2yrs personal and corporate 1040's, and year to date P&L from the accountant).

Today, no income programs come in a variety of forms with a varying array of conditions. Typically, the rates are much higher and the downpayments are much greater than "full doc" loans. No income programs are available up to 75% LTV (Loan to value) It isn't as simple as signing your name and waiting for the check!!!!

The following terms apply to the no income process:

Stated income - Income is listed on the application. The qualifying ratios are applied to this income and the cash flow may be evaluated to see if the income stated on the application can be supported by the funds flowing through the account. More significant is the ability to determine an income range for the employment listed. If the stated income isn't realistic, the loan will be denied.

No ratio - income numbers are NOT listed on the application but employment will be verified using licences (for self-employed) or verbal means.

Asset Verification - Two to three months of bank (or equilivant) statements will be submitted. Depending on the program requirements, this may be used strictly to show where the funds came from or as a back way to verify income (cash flow through the account). Usually, they are also looking for 6 months "post closing liquidity".

No Doc - Income and employment are not listed and there is no asset verification. The loan is based primarily on the credit and appraisal.

No Income Fixed

3-Oct-2008

Rate Points APR /1000 Max LTV Max Amt Credit Score 4506?

Stated Income with Verified Assets

30 Year Fixed 10.125 0 10.191 $8.87 75* 418K to 1mm* 680 No

9.875 0.5 10.000 $8.68 75* 418K to 1mm* 680 No

9.25 1.625 9.502 $8.23 75* 418K to 1mm* 680 No

8.875 2.625 9.237 $7.96 75* 418K to 1mm* 680 No

Stated Income with Stated Assets

30 Year Fixed 10.375 0 10.442 $9.05 75* 418K to 2mm* 680 No

9.875 1 10.060 $8.68 75* 418K to 2mm* 680 No

9.25 2.25 9.576 $8.23 75* 418K to 2mm* 680 No

8.875 3.25 9.311 $7.96 75* 418K to 2mm* 680 No

No Ratio No Assets to 65%

30 Year Fixed 10 0 10.066 $8.78 65 418K to 2mm** 680 No

9.875 0.25 9.970 $8.68 65 418K to 2mm** 680 No

9.25 1.5 9.487 $8.23 65 418K to 2mm** 680 No

8.875 2.5 9.222 $7.96 65 418K to 2mm** 680 No

No Income (No Doc) No Assets to 65%

30 Yr Fixed 10.125 0 10.191 $8.87 65 418K to 2mm** 680 No

9.875 0.5 10.000 $8.68 65 418K to 2mm** 680 No

9.25 1.75 9.516 $8.23 65 418K to 2mm** 680 No

8.875 2.75 9.252 $7.96 65 418K to 2mm** 680 No

* Lock is 45 days. 650k to 1mm add .25 points to 75% LTV, 1mm to 2mm add .5 points - LIMITED to 65% LTV

** Lock is 45 days. 650k to 1mm add .125 points to 65% LTV, 1mm to 2mm add 1.125 points - limited to 65% LTV