Friday, December 30, 2011

Need Advice? Mortgage Loan Consultant Helps with Home Loan Mortgage FAQs

Bill raymanA huge part of my business is advising folks for free about the decision process related to getting a mortgage on their home, business property, or investment properties.  Please feel free to call me anytime to discuss your needs or just walk through options regarding refinancing, a new mortgage, fha mortgages, down payments, or any other aspect of the process.  There is no cost or obligation associated with my providing you consulting. 

If you are a real estate professional such as a real estate agent or broker, property manager, investment manager, I am here to help you be more successful at working with your clients.  Similarly, CPA's and Estate Lawyers commonly find my services helpful.

Call me today at (310) 453-4016 or email me at

Wednesday, December 7, 2011

Major Change in Mortgage Loans: Banks Offer Stated Income Loans Again

What is a Stated Income loan? What does it take to qualify for a Stated Income loan? How does a Stated Income Loan Compare to a Full Documentation loan?
Who is most likely to need a State Income loan?

Recently, I have found a few banks who are venturing into the Stated Income market again. Overall, the loan market is still very tight even as interest rates remain at historical lows. My ability to find banks with special rates, products, or underwriting requirements is one of the features that distinguishes my mortgage brokerage. Here is the scoop on Stated Income loans.

When you apply for a home loan, especially in the current mortgage environment, most banks require you to provide full documentation of your income. You provide W-2 income statements and pay stubs from any payroll employment, 1099's from any income derived from contract work, tax returns and bank statements. All of this provides the lender with proof of your income.

In contrast, a Stated Income loan allows a borrower to qualify based on the income a borrower states on the application form that he or she earns. With a Stated Income loan, the lender does not verify the income. No tax returns, no pay stubs, no bank deposits, no W-2's or 1099's are required.

Stated Income loans are designed for the many borrowers who have the income to afford a mortgage and who have acceptable credit, but who don't meet traditional underwriting standards - called full documentation or "full-doc" loan - which requires them to prove that the income they claim was actually earned in each of the two prior years.

Self-employed borrowers usually have the most trouble meeting this requirement, and Stated Income loans were originally designed for them.  But many applicants with incomes from salaries also have trouble meeting the full-doc requirements. For example, their income might incorporate an increase in salary which is not reflected in documents covering prior periods.

Stated Income loans are popular with many people. Here are some of the borrowers who may consider getting a Stated Income loan:
✓              Self-employed people who own a small business
✓              Highly commissioned people who may have a low base salary but make most of their income on commission
✓              People who can't document at least 2 years of income at their current income levels
✓              People who make plenty of money but don't want to disclose their income

Lenders do try to determine the reasonableness of the amount of income stated and generally employ three methods to do so.  1) They consider a borrower's liquid assets - which must be verified - as a way to "authenticate" the amount of income stated.  If a borrower says they make $X per month, the lender expects to see at least 12 times X in the bank.  2) Another test is that the income stated must be consistent with incomes earned in the type of business or line of work in which the applicant is involved.  3) Lenders often require a self-employed borrower to prove they've been self-employed in the same business for two years as verified by a CPA letter or business license.

Be aware that some lenders require that the stated income borrower execute an IRS Form 4506-T which authorizes the lender to request IRS verification of the figures in the borrower's tax returns. Lenders don't ordinarily check the returns, but the possibility that they might is an inducement to report income truthfully.

As a mortgage broker I actively seek out all the possible methods for getting you the perfect loan to meet your needs. I have identified at least four lenders who are currently offering Stated Income mortgages. If you fit into this category or have a friend who does, please give me a call. There is no cost or obligation for the consultation.

Call me today at (310) 453-4016 or email me at

Cheerio, Matey!

My earliest exposure to it was innocent enough.   I was young. An adult offered me some with sugar-coated words. "Try it. You'll like it." And it was free! Who wouldn't pop the proffered goody into their mouth? It was a little bland at first, no "nose" to speak of, but it had a pleasant chewiness. Even better, it became sweeter the longer it remained on my tongue. You know the rest: no sooner had I swallowed it down then my eager fist reached out for more. I've been using the stuff ever since. You probably know it by its street name: Cheerios.

Hi. My name is Bill and I love cold cereal.   I didn't know Cheerios was a gateway cereal. More than 70% of adults who eat cold cereal started with Cheerios. This is not something the folks at General Mills will talk about (especially after their recent run in with the FDA who wanted to declare Cheerios an "unapproved new drug" because of its health claims.) In hindsight, my path to ever more types of cereal was entirely predictable. From Cheerios, I turned to harder stuff, like Grape Nuts, and to those with hypnotically alluring names (Quisp, Chocolate Chip Cookie Crunch, Bananellos), a path made smoother by the many 'friends" who ushered me in, personalities so familiar you know them by just their first name: Cap'n, Tony, or Crackle (the middle child, just like me!)

My early infatuation blossomed through the years. I've tried them all. There are so many that I regard cereal like a biological taxonomy. Under the Phylum, "Food", I subdivide the supermarket aisle into Families based on a cereal's construction: Flake, Puffed, Crunch (Hollow and Solid), Shredded. Their Genus is their particular building blocks, a cereal's DNA as it were: Wheat v Oat v Rice v Corn v Bran. There's a type I call Novelty because I'm really unsure just what they are made of. French Toast or S'Mores, anyone?

They become Species from their diverse additives: nuts, fruit, marshmallow, chocolate, vanilla, maple etc. Finally, the peculiar experience from eating each parses them into individual Breeds: Milk Absorbent vs. Floater? Chewy vs. Sticky? Sugared vs. Well,-Not-Quite-As-Much-Sugar? Sorry, but the confines of this article prohibit exhibiting the full cold cereal pyramid.

Much as I enjoy contemplating cereal, let's face it, it's all about eating the stuff. I like to mix. The dozen varieties that rotate in my cabinet always contain a cross-section of Breeds. No bowl ever has less than five components and how they are layered can make all the difference. Fiber, crunch, bran, flake, novelty works better than bran, novelty, crunch, fiber, flake. Trust me. Flakes on top can splatter the milk. Putting chocolate on the bottom is a dud because it just lays there, aloof and inert. Always, a soupcon of Novelty on top is the butter on the steak; it makes the eating enchanting.

 Keep in the mind, the right mix also depends on when you're eating. Late at night I stress Puffed and Hollows. They take up space in the bowl without adding density.

Here are some cold Cereals I'd like or expect to see in the near future:

  • Bourbon flavored, with the pieces die-cut to look like NY Taxis
  • Bacon Bits sounds awful, but so does steamed foie gras and prairie oysters
  • Really really cold cereal, kept in the freezer, packed and eaten in cups
  • Flavor changing cereal, like some chewing gum
  • Chewing gum cereal
  • Pre-Milked cereal. Milk is embedded yet the cereal is dry to the touch. Great for travelers.

Will any of the above hook the next generation of children? Don't know. But for sure, I want some of them to keep at it so they can tell me why I used to love Trix and hate Froot Loops, but feel the opposite now. What changed: the cereal or me?