Reply #6: Fannie Mae and Freddie Mac have provisions for VERY limited documents....

[Kingshakabobo]

......for good credit and lower loan to value ratios. "Conventional" loans often require 1 pay stub or no pay stub - they only require a 'verbal verification of employment.' These aren't to be confused with "stated income" or "liar loans." The conventional loans still require a document(s) to be signed that allows the end investor to "verify" your income for normal audits or an audit in the event of an early default. The conventional loans are streamlined for "convenience" of the borrower - NOT because the borrower can't prove income.


Re: True Stated loans....
It never made sense to me to allow a borrower, working in a job that provides pay-stubs and W2s, to state their income. It was just asking for people to lie. I've seen senior officers, from national banks that call on our office, encourage us to "make up" income - as long as it's "reasonable."