ca 640 stated 100% or low/no trades

[platinumonerm]

Help have a 640 SE borrower with few trades ....its a purchase 100% in CA?
With all the program changes...Im stuck with the client already in contract!
HELP

[ckoback]

are you having issues finding a lender that will get this loan done? How long have they been self employed? are they first time home buyer? do they have a buisness license? i dont see why you would have an issue. from what i have found A paper will go to 620 score. can they get a CPA letter stating income? can they use bank statments to prove income? light DOC vers stated.

[OregonLO]

You might try to explore some different ways to get that one done. Check with Equifirst, I heard they were still doing a 640 stated income loan.

Decision 1 has a program that might work but I'm not sure if they still have it. Just some ideas though. Good luck

[ckoback]

you might also want to try TBW and Chase or BOA. i wish all my clients had 640 or better. :rolleyes:

[OregonLO]

I've been pampered lately...I'd say 90% of my clients in the last few months have been conforming deals. Its nice to have! The subprime market is definitely getting tougher.

[platinumonerm]

Ok...this client has been se for 1 1/2 years...just opened business in Jan same line of work...lol...mortgage. they can go 12 mos bank statements.
Porblem is low trades...only one over 12 mos and its low balance...everything else is new 4-9 mos but higher like 2 30,000$ range.Decision one....no.....Equifirst is now 660 stated and trades are not ok

[OregonLO]

First bank and First have/had a no tradeline requirement. You might try them for a bank statement program.

First Franklin will allow you to build tradelines as will Indymac.

hmmm....not sure who else to talk to

[promortplanner]

check his schedule C's -lines 13,30,31. stated income, no ratio, and no doc has seen increasing scrutiny and they've bumped most of it back to 95% with ficos under 680. The fico's over 680 need to bring reserves to the table with at least 3 months. pressure in the secondary market with 2nd mortgages kicks your second to the cap rate of 12.5%. I'm sure you would have to buy down the second to the cap rate based on your scenario. average cost $3500. you can't just state the income anymore to make the ratios work. I would still be collecting full documentation and trying to determine - does this borrower really qualify with income and can he afford the payment. too much risk with buyback from the lender now to fool with it otherwise. good luck but I would get off of that buyer. you'll spend a lot of time working this purchase and chances are - you won't get it approved with the changes in guidelines over the last 30 days. Sorry!

[noher]

My office has come across many loans that have low Ficos or no Ficos at all --- limited tradelines but some may be able to go full doc or put a little down.

Please shoot me a message or post a reply if you think you might have a lender for me.

Thanks!!!