Florida Mortgage Information

If you’re thinking about buying a home, or refinancing the mortgage on your current home, you’ve previously been faced with two options;

1. Prove your income.  This means providing W-2 forms, paystubs, or tax returns to the lender to prove that your income is what you say it is.  The lender bases all of their decisions on your debt ratio computed from these documents.  The ability to prove sufficient income means you get a better rate on your loan.
2. Apply without proving your income.  This is called “reduced doc” or going “stated income”.  This is often easier to do, but harder to qualify for a higher LTV, and often impossible for someone without a business or professional license to use.  For some business owners, it is the only way to get approved, depending on how they distribute income from their business.  This type of loan also normally is considered higher risk, and has a higher interest rate.

Now there is a third option.  One lender we work with has introduced a streamlined “shortcut program”, and for borrowers who qualify, it is truly the best of both worlds.  Basically, if you have a strong enough overall file, (credit score, stated income and debt ratio are the three major components) you can get your mortgage without proving your income or submitting any documentation for your earnings, and still get the rate normally reserved for a conventional loan.  In the current economic climate, with sub-prime lenders going out of business, and most banks and credit unions tightening the requirements to qualify for a conventional loan, this can be a great way for someone to get the loan they need without a lot of hassles or difficulties.

There is a one drawback to this program.  There is no way to know for sure if you qualify for the program without submitting your application through the automated system.  But since we’ll submit your application at no charge, and since this is the same system used to submit your application for most loans from most lenders, trying to get this type of mortgage seems like a no-brainer.  Give me a call at 813-882-8878, and I’ll be happy to discuss this option with you, and we can see if this program will work for you.

FMI