Thanks for posting that, Powayseller. Regarding stated income loans, I have had a nagging question for a long time. So I am asking anybody in the mortgage biz who happens to be reading this blog: given that a recent comparison of (a) IRS returns to (b) stated income on mortgage applications showed large and systematic discrepancies, what percentage of buyers lied on the loan application, and what percentage lied on their tax return?
The quick answer is that everyone lied on their mortgage application, in order to qualify. However, I’m not so sure that this is always the case. There are big tax cheats out there, I’m sure, and “stated income” could be their entry ticket into a house.
So, if there is any mortgage broker reading this, what is your experience? Do you mostly see middle-class folks who whisper to you “I need to go no-doc, I can’t get the loan otherwise”, or do you see shady characters (drug dealers come to mind) who seem to have the dough but no way to prove it?
My guess is that most fall into the first category, but it would be nice to get an expert opinion.
