If your score is 620 and you are only borrowing up to 60% of the equity in your home there is very low pricing adjustments on a 30 year fixed rate mortgage of $417,000 or less. Believe it or not, that goes for both rate & term refinance as well as CASH-OUT!

The better news is that if  your score is 620 and you do need to borrower more than 60% of your homes equity but not more than 75% and you can afford a 15 year fixed, you will get the same rate as someone with an 800 score on a rate & term refinance. If you can afford a 15 year fixed and you need cash-out there is a small adjustment up 60% of equity and a bit larger one to 75% but, still much less than the 30, 25 or 20 year fixed.

If you need to 80% of equity for rate & term or a cash-out refinance with a 620 – 660 credit score then, the best option is a portfolio lender as they make there own rules. If you show strong assets such as stock, bonds, or CD’s and you have an excellent mortgage history they will approve the loan.

Let an experienced mortgage professional review your specific situation to best determine which course of action to take. Yes, obtaining a mortgage has definitely become more difficult then in past recent years but, proper guidance to help navigate all of today’s option will certainly increase your chances of hearing the words, “your approved!”.

Jim Guerriero

First Lenders Mortgage

800-280-APPROVED

The last year and a half or so has seen a unprecedented chain of events occur in the mortgage industry with the closing of hundreds if not thousands of companies and the elimination of many of the so-called “exotic” products.

When the dust finally settled only the strong have remained ready willing and able to lend to qualified borrows. We are proud to be among those standing tall and offering the very best of what is available today for the consumer. Along with standard conventional, jumbo and FHA mortgages that we have available, we are among the few remaining companies that can offer No Income Verification and Stated Income Verification loans to our highly qualified New Jersey, New York and Pennsylvania borrowers.

What distinguishes “No Income Verification” from “Stated Income” loans?

The answer is that true “No Income” allows for the verification of a borrowers employment while allowing the income section of the application to remain blank. A “Stated Income” loan on the other hand, requires a borrower to “state” an income to be used on the application but, not be verified. It must however, make sense for line of work that the borrower is in. In both cases, asset verification is required and must be significant enough to warrant approval of the loan. There is no set calculation as only common sense will prevail. It is important to note that these products are for owner occupied properties ONLY and the borrower MUST be self-employed or retired.

What is the advantage of going with a “No Income” or “Stated Income” loan?

With the changes that have taken place in the industry there is no longer a higher level of automated underwriting approval that allows for income to be accepted as stated therefore, the only options available for the self-employed or retired borrower are those previously mentioned. Stated Income loans are allowed up to 70% loan to value (LTV) while No Income loans are limited to 60% LTV.

What make these products excellent as well is that the interest rates are very similar to Fannie Mae and Freddie Mac income verified loans. The add-on to the interest rate is .375% for No Income and .25% for Stated Income loans. To be more specific a 30 year fixed rate as of this blog posting would be 5.50% up to $417K for No Income and 5.375% for Stated Income. These options are available for our 5/1, 7/1, 10/1 ARMS as well as our 10, 15 and 40 year fixed.