Bring back the stated income and 100% mortgage

Though there is an argument (often made by mortgage loan originators) that there must be a minimal risk underwriting box that for stated income and high loant to value products, these loans don't seem to be coming back any time soon.

Self employed borrowers are feeling like victims of banks' current underwriting guidelines when it comes to documenting income. Their Adjusted Gross Income (AGI) is much lower than the money their business brings in. Frequently self employed borrowers taking 2 positions when it comes to what their income is. When they file their tax returns, they use every write-off the IRS allows in order to bring their taxable income to the lowest it can be. That is legal and that is fine, however, know that what is written in the line on the tax return labelled Adjusted Gross Income, is the income that can be used with some slight variations. Often that isn't enough to qualify for a mortgage that the borrower wants.

There can be a few items (paper loss type things) that can be added back to the borrower's income. Items such as, depreciation, and home office use, can be added back to the borrower's income, but other than that, the AGI is the income that is used to qualify self employed borrowers.