No Doc Loans Banned in NC??? (Durham: good credit, house, employment)

[Kevin123]

I read on this forum that stated income loans are being banned by the state of NC after Jan 1, 2008. Does this include No Doc loans as well. I have good credit and would like to buy a home in NC, but I have only been working at my new job for a few months. Before that I was in college getting my associate degree. I was not working during that time so I would have trouble getting a regular loan. I think a nodoc or stated income loan would be the only way for me to get a loan. If anyone could clarify the new law or provide me with what my options are I would appreciate it.
Thanks

[J_Lurk]

Here is a press release on the new law: http://www.responsiblelending.org/press/releases/page.jsp?itemID=33783455 (broken link)

I'm not an expert on this, but personally when getting a loan I've never had to produce more than a couple of months of paystubs. However, another reputable source for information and/or loans would be the Self Help organization based in Durham. http://www.selfhelp.org/about-us (broken link)

There are a couple of realtors on the board and maybe they can steer you to other sources. Good luck!

[Asheville Native]

To me to not demand proof of income when loaning money is reckless behavior on the part of financial institutions, and has a very real possibility of coming back to bit them when enough people have taken out loans they cannot repay, and begin to default on their loans in large numbers.

But that would never happen, right

[ladyhen]

This will really hurt those who are self-employed and cannot prove income with check stubs.

[Asheville Native]

There are other ways to prove income besides a pay stub. Does a 1040 ring a bell?

[rcarrillo]

The old way of prooving income was a verification form sent to your employer. They would fill out your position, start rate, pay rate, YTD income, last raise, next expected raise, etc. Crazy I know.... ask an employer to verify your job and income.

This is still done all the time for FHA, Fannie Mae and Freddie Mac and is accepted in lieu of paystubs in most cases. Of course it has to be a verifiable employer (phone book, license, etc).

For most conforming and government loan programs, being a student is counted as employment if your field of study is similiar to your occupation. There is no income of course, but its not counted as "unemployment". If you have decent credit and 2-3 months of house payments in savings then you can often get a job with 2-3 months of employment with income if you were in college prior.

I bought my first home while in graduate school. I had only been getting a stipend for ~9 months at the time as I was in college prior. No problem qualifying for FHA because of the work/income history.

Try that before the No Doc/Stated Income route.