Are we really that shocked? You take a hit on your rate when you use a “stated income” because of the added risk. One would think that you would only use this program if you absolutely had to because you didn’t make enough to qualify for the loan. Note also that the increase in rate here is not realized by the loan officer in the form of YSP and only profits the lender. Even better is the NINA loan: No income/No Asset verification. Ideally it would be used for a small business owner that would have difficulty documenting such things. Ideally being the key word….
