Question by International: Stated income loans to people with good credit are essential for a recovery – can you push banks to start?
For the economy to recover banks must start lending to people with good credit who are willing to sacrifice a larger portion of their income for their mortgage. The old income to loan ratios dont work and people with great credit history will not default. What is essential is a higher down payment not tax returns! Stated income and low-doc loans have to come back and when they do the economy will bounce back instantly.
Best answer:
Answer by Ryan M
Stated income loans helped create the housing bubble to begin with. Those people who are willing to sacrifice a higher percentage of their income are a HUGE risk to the lender.
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Question by RAJAN s: Making home affordable loan program?
My loan is owned by Freddie Mac. Like most people my house value is less that what I owe. But the above program lets me refiance. I called my bank and checked. But they told me that since my loan is owned by Freddie Mac I can only refiance with them and cannot shop for loan from other banks. Is this true? I heard that this condition does not apply to Fannie Mae owned loans. Wierd.
Thanks, cheapest I did mention that I meet the criteria per makinghomeaffordable.gov. But my current back say that I can only refinance through them as my loan is owned by freddie mac. If it was fannie mae owned loan then I could seek other banks for loan. Is this true is my question.
Best answer:
Answer by Pandas4me
go to makinghomesaffordable.gov and see if you are eligible for the program, pilule there are some guidelines you must meet.
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