No Income Rates

With the current crisis in the credit markets, all no income programs will have to be individually verified, use the following as a guide only

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 higher and the downpayments are greater than "full doc" loans. No income programs are available up to 95% LTV (Loan to value) but those rates are higher still with mortgage insurance requirements. 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 through the accounts may be evaluated to see if the income stated on the application can be supported by the funds flowing through the account.

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

27-Dec-2007

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

Stated Income with Stated Assets

30 Year Fixed 9.125 0 9.187 $8.14 75 417K* 700 No

8.75 0.75 8.895 $7.87 75 417K* 700 No

8.25 1.75 8.501 $7.51 75 417K* 700 No

7.875 3 8.257 $7.25 75 417K* 700 No

No Ratio with Assets

30 Year Fixed 9.125 0.125 9.201 $8.14 80 750K** 680 No

8.75 0.875 8.909 $7.87 80 750K** 680 No

8.25 1.875 8.514 $7.51 80 750K** 680 No

7.875 3.125 8.271 $7.25 80 750K** 680 No

No Income (No Doc) No Assets to 80%

30 Year Fixed 9.75 0 9.815 $8.59 80 750K*** 680 No

8.875 1.375 9.092 $7.96 80 750K*** 680 No

8.25 2.625 8.598 $7.51 80 750K*** 680 No

7.875 3.875 8.355 $7.25 80 750K*** 680 No

No Income (No Doc) No Assets to 90%

30 Yr Fixed 9.75 0.75 9.904 $8.59 90 750K*^ 680 No

8.875 2.125 9.179 $7.96 90 750K*^ 680 No

8.25 3.375 8.684 $7.51 90 750K*^ 680 No

7.875 4.625 8.440 $7.25 90 750K*^ 680 No

* Lock is 45 days

** Lock is 45 days, Loans from 417K to 750K additional .75 points

*** Lock is 45 days, Loans 417K to 750K +.75 points

*^Lock is 45 days, loans 17K to 750K +1.25 points, Mortgage Insurance required above 80.01 LTV - not included in APR calculation,

Please call for information on other property types and "less than perfect credit"