Can you just “state” your income at whatever you think would make it easier to qualify and get an FHA loan… no.
FHA requires documentation – and that might be why there’s no need for an FHA BAILOUT. In all seriousness, FHA is not a “publically” traded company like Bear Stearns or Fannie Mae or IndyMac – but still the point is that they have pretty strict guidelines.
Those guidelines state that if you want to borrow money that is insured by FHA – you need to document your income… and you will need enough income to qualify to make the payments on all of your obligations.
We’ve had at LEAST one borrower a week apply for a loan that was not legally seperated. This means they were still OBLIGATED on the note for the home they owned with their spouse – even though they are still living with that person.
They wanted to just “state” their income. That won’t work for an FHA loan. In NC you can no longer obtain a Stated Income loan. In other areas, you can still apply for a conventional loan with a SISA – you would need at least 25% down and a 720 credit score.
However, AGAIN – NC put the NC Predatory Lending Practices in place, and you can not get a stated income loan – it’s not that it’s no longer offered – it’s against the law.
If you have questions about purchasing a new home in Cary, NC- call Steve and Eleanor Thorne 919.649.5058