Steted income loans were originally available for self-employed borrowers who "wrote off" much of their income for true business expenses. The problem was that they seldom qualified for "full documentation" loans. Thus, the stated income loan was born. Because of all the abuse of this program, there are very few stated income loans available for those that need them. This will cause problems for many self-employed borrowers who have ARMs that will reset in the next year or so! From Business Week... Alt-A mortgages were designed for people with good credit who had trouble documenting their income - people like the self-employed. Not as risky as subprime but not quite prime either, Alt-As made some news recently because they're part of what's ailing Fannie Mae and Freddie Mac. About hal...
Comments
2