Mortgage loan with Stated income, lender fees.?
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If you get PMI, you have to ask the Lender to remove it when you achieve 20% equity in the property. Given the fact that property values are dropping, you could be paying PMI for many years. And, it is not tax deductible, So, let's say you get PMI at $150 per month, and have to pay it for 10 years ( which is a reasonable assumption-that was the average amount of time PMI stayed on an account, before the real estate bubble drove prices up between 2002-2006). You will have wasted $18,000.00 to get into a property that will potentially decline in value for several years more. ( Please, read the forecasts for how long it is estimated it will take to clear out the current inventory.)
Look for a property you can afford. Either spend less, or save more to get a conventional 80% mortgage, where you put down 20%. It won't hurt you to wait, the market is still falling. If a realtor tells you to act now, because interest rates are low, don't believe that such a reason is sufficient to act now. It isn't. Most people stay in a home only 7 years, before moving. The cost of paying PMI for the same period can easily outweigh paying a higher interest rate on a conventional mortgage, and getting into a property you can actually afford.
As far as stated income is concerned, self-employed people who are showing no income have a very hard time getting a mortgage--they always pay more, even if they have a great business. If you are showing income and paying your income taxes, what is the problem? Is it that you are showing no income at all, or too little to justify the mortgage payment? Perhaps you two have a parent willing to co-sign a loan with you. That, too may be another alternative.
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