Comments on: Sub Prime Lending http://www.theharperteam.com/blog/buyers/sub-prime-lending/ It's All About Experience: The Experience We Bring to the Process, Your Experience of Working With Our Team Fri, 03 Feb 2012 17:06:06 +0000 hourly 1 By: Dennis Viers http://www.theharperteam.com/blog/buyers/sub-prime-lending/#comment-549 Dennis Viers Sat, 10 Mar 2007 18:11:20 +0000 http://www.theharperteam.com/blog/buyers/sub-prime-lending/#comment-549 When considering interest-only programs, we need to look at two issues: Prime and sub-prime loans. With respect to prime loans, lenders are still very willing to lend on stated income applications, especially when there is a high credit score, documentation from a CPA regarding employment, and verifiable assets. When these conditions exist, some lenders actually prefer stated income to full documentation. As to the sub-prime issue, it has been well documented that many lenders are going out of business or elimating certain programs; i.e. 100% CLTV financing. In the process of keeping those programs they continue to offer, some sub-prime lenders have placed tighter restrictions on credit scores and stated income programs, some eliminating stated income programs altogether. I believe Stephen was referring to this situation at the marketing meeting, although I wasn't there to hear his comments. Stephen is an outstanding loan officer and an associate of mine at Diablo Funding Blackhawk. When considering interest-only programs, we need to look at two issues: Prime and sub-prime loans. With respect to prime loans, lenders are still very willing to lend on stated income applications, especially when there is a high credit score, documentation from a CPA regarding employment, and verifiable assets. When these conditions exist, some lenders actually prefer stated income to full documentation.

As to the sub-prime issue, it has been well documented that many lenders are going out of business or elimating certain programs; i.e. 100% CLTV financing. In the process of keeping those programs they continue to offer, some sub-prime lenders have placed tighter restrictions on credit scores and stated income programs, some eliminating stated income programs altogether. I believe Stephen was referring to this situation at the marketing meeting, although I wasn’t there to hear his comments. Stephen is an outstanding loan officer and an associate of mine at Diablo Funding Blackhawk.

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