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The last year and a half or so has seen a unprecedented chain of events happen in the New Jersey stated income loan industry with the shutting down of hundreds if not thousands of loan companies and the elimination of many of the so-called “exotic” products.

When the dust finally settled only the strong have remained prepared and able to lend to qualified clients. We are proud to be among those standing tall and offering the very top of what is available today for the clients. Along with standard New Jersey fha mortgage that we have available, we are among the few remaining banks that can offer No Income Verification loans to our highly qualified New Jersey borrowers.

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

The answer is that real “No Income” allows for the verification of a client’s job while allowing the income section of the application to remain blank. A “Stated Income” mortgage on the other hand, requires a person to “state” an income to be used on the loan application form, but not be verified. It must however, jive for job that the person’s is in. In both cases, monetary verification is needed 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 home buyer’s MUST be self-employed or retired.

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

With the changes that have occured in the industry there is no longer a higher level of automated underwriting approval that allows for income to be approved as stated therefore, the only selections 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 outstanding as well is that the interest rates are quite identical 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 notes. 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.

If you have been having challenges proving your income with you normal mortgage company then a no income documentation mortgage may be just what you have been looking for.

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