The SIVA loans can also be used for fixed income borrowers, however
underwriters look more closely at applications submitted by salaried
individuals who do not provide income documentation. Also, expect to
pay a higher interest rate on these loans than those that require full
documentation, and slightly lower interest rates than No Income, No
Asset (NINA) and No Doc loans.
Although programs are available for borrowers with poor to excellent
credit, the minimum credit score is usually 500. In most cases the
mortgage history can not reflect a late payment of more than 90 days.
The higher the credit scores and the better the mortgage history you
have, the higher the Loan to Value ratios you can get. This means you
can borrow more against your property. Lenders may also make
adjustments for individuals capable of making a large down payment.
Lenders will likely verify the barrower has two months of the monthly
PITI (Principal, Interest, Taxes and Insurance) payments in reserves and
in some cases when the loan amounts are higher, six months of PITI in
reserves. Also the reserves may be not be based on the PITI payment but
on the monthly income stated on the application.
Self employed borrowers may need to produce a business license or other
proof of business. It the borrowers don’t have a business license; they
may need to provide the lender with a letter from their Certified Public
Accountant (CPA) which vouches for the borrowers ability to generate
earnings.
An employee with a salary without a W2 form or pay check stubs may need
to produce a Verification of Employment (VOE), which will be sent to the
borrower's place of employment. The employer must verify that the
borrower is gainfully employed but will not be asked to verify
compensation information.
Even fixed income individuals can get stated loans. In some cases the
borrower gets some sort of stipend, such as Social Security, Disability
or pensions. Lender criteria may vary, but in many cases it amounts to
a benefit letter from the payor to the lender which outlines the type of
benefit paid. In this letter the amount is either not-included or may be
blacked out by the borrower.
