“i’m thinking there’s more to it than that. i recall self employed people have always had more trouble getting loans than employees. might have to do with the kind of jobs he does, consistency of income on a yearly basis, plain old crappy accounting… and possibly fudging of numbers…”
drunkle, the caller apparently said that they “needed” a stated income loan. Surely that means only one thing: That they are cheating, or planning to cheat, on either their taxes or a lender. If they had difficulty convincing a lender to give them $1 million to buy a house because their self-employed income was not steady, then why would “stating” a higher income than they actually made make their repayment of the loan any more secure?
If I were a lender, I’d want to know as much as possible about a borrower in order to make the most accurate assessment of the risk of future nonpayment. Getting less information just means that I have to charge more than I should for the better risks, and less than I should for the worse risks. If these people think they’d benefit from this, then clearly they must be bad risks. Or they are cheating on their taxes.
