attn: Loan Officers

Does anyone know about a mortgage plan called "stated, stated. My lender says its the best way to go in my situation. Putting 5% down on 3 unit investment property. I'm talking to Allied Home Mortgage.

Thanks, they did explain that. I just wanted to know if there were any negatives that they may have left out. Anyways, I am getting a pre-qualification letter tommorow. As far as getting pre-approved, is that necessary? I just want to make sure I don't get surprised on the financing at the last minute, what do you suggest. My loan officer dosen't seem to think it is necessary, but I don't want them saying, oh we forgot about this cost and this cost turned out to be higher, that kind of thing.

Stated, stated sounds an awful lot like no-income verification loans. If they are, you are paying a higher rate. On do those if you can't meet the numbers you need to qualify. Taking a few minutes to make some photocopies is worth the lower rate.

my rate would be 7.625% fixed 30 yr. stated, 5.75% fixed 30 yr. if it passes FHA appraisal. Does this sound about right. BTW, my wife and I have a combined income of around 30k a yr. With her working on temp force for the last month. I have worked at my job for years though.

The going rate for a conforming 30 year loan is 5.375% in my area with no points or closing costs. If I were to get a no income verification loan, which you may need depending on the price of the home, it would be about 5.5% through my broker. 7.625% is out of this world ridiculous given the current rates.

my credit score is 660 avg. I make $9 hr. 40 hrs.
Could you get me a better loan on a 3 unit w/ 5% down?

btw, the listing price on the property is 99k

"how much do you make on the backend? or do you work for free?"

I'm not a mortgage broker...the rates have been low so I've been looking at a possible refi or investment property purchase. He's not the only broker offering that rate, so I'm sure he's making money, as are the others.

wright4lfe, you should have mail

I refied last June at 5.375% no points no close, no surprises.

"bro, i work for a direct lender, brokers come to my company shopping their loans."

Not sure what that relationship is, but I just sent a coworker to my broker and he got 5.5% for his jumbo mortgage, no points no close. 1 month ago he refinanced direct through Countrywide and paid 6.25%. If by direct lender you mean that you work for a Coutrywide or a Washington Mutual then your in a slightly different game.

2 other co-workers are going through him as well...one was at 5.5% and is coming down to 5.25%, other was at 5.75% and is coming down to 5.25% as they both locked the rate last week. Both no points no close.

The 10 year bond closed at 3.7 today, which is what lenders will sell bonds for to finance the mortgages. My broker's rate is 5.375%. The lenders dictate what kind of spread they will work off of and the brokers up the rate to where they need to be to make money. When I refied in June the bond was at a low of around 3.2 but my rate is the same as being offered now with the bond at 3.7...that means either the lender or the broker is working on a shorter spread this time around.

At 5.375% my broker is probaby making himself a few thousand in commission given that if I wanted to pay closing costs it would run about $2500 to get my rate to 5.25%. He'll give me the slightly lower rate, but he can't eat the costs because that would eat into his spread.