How do non-qualifying home loans work and how can I find them?
What are the pro's and con's associated with non-qualifying loans?
- 1 decade agoFavorite Answer
They are gone! Gone since July of 2007! Here is the real deal! EVERY LOAN requires the buyer to sign a 4506. The 4506 is a form you sign when you apply for a loan. The form is sent into the IRS to see if the information you gave to the lender is indeed true and correct. If you lied on your paperwork the lender is required to inform the IRS of the difference and you could be taxed for the difference. The stated loans were originally intended for the self-employed borrowers who write off EVERYTHING, for some unknown reason, the lenders allowed W-2 employees to get in on the programs which is what caused a lot of the mortgage melt down! ( that is why they are gone and many people distroyed the self employed peoples opportunities!) But....if you have 20% for a down payment or equity try Wacovia!Source(s): California Broker
- Christopher BLv 61 decade ago
Non-qualifying loans are the same as "stated income" loans, or "no doc" loans (meaning no documentation). They are very rare, not many banks do these anymore. And if they do, they usually require a 20% down payment, and usually don't have the best interest rates.Source(s): Professional Real Estate Investor
- SherieLv 44 years ago
Interesting! Never really gave this much thought
- KitKatLv 71 decade ago
cons -read the newspaper & watch the news. if it sounds to good to be true, it is!!