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The A-Z of Stated Income Loans

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Here’s the lowdown of stated income taxes, otherwise called ‘loans without income verification’ or ‘no doc’ loans. They sound wonderful – until you see the price.

Here’s why they sound wonderful.

You don’t need to supply proof of employment or income verification. Then again, you don’t want to go through the 60 day hassle of filing document after document that opens up the can of worms of your income details. You’ll face no red tape of having to submit tax returns and verify income.

But then there’s the price…

Standard income loans first emerged in 2008. Their innovator was the company Ameriquest. They were offered by banks as part of their regular repertoire and were cheaper than today. Then came the string of defaults, and banks pulled out as fast as they could. Today only a few intrepid individuals sign the loans and fund them from their own pockets. In order to ensure maximum profit and to offset risks, these unconventional lenders set arbitrary rules, terms, payment rates, and schedules.

Here’s the good news of stated income loans as it appears in 2015:

If you are a borrower, here’s what your lender will request:

  • No W-2 income documents
  • No need to furnish tax returns
  • No IRS documents
  • No need to show proof of employment

Instead, you’ll be simply asked to state how much you earn and you’ll be taken at your word. Little wonder that these loans are called ‘liar’s loans’ or ‘liar loans’! Stated income mortgage loans have become increasingly popular for borrowers with low credit as well, especially in the case of people who have an unstable source of income or have reduced self-employed income shown on their taxes. Your application for a stated mortgage loan is approved based on your cash reserves or equity and on your ability to afford the monthly payment. Whether you can or not is essentially based on what you tell your lender.

The conditions of these loans makes them alluring to customers with a wide range of credit histories, including subprime borrowers. The lack of verification makes these loans simple targets for fraud.

Other factors

Stated income loans are also appealing in that they fill a gap of situations which normal loan standards would not approve. For example, a standard rule is that a customer’s mortgage and other loan payments should take up no more than 45% of the person’s income. This makes sense when it comes to a person applying for a mortgage for her first home. However, a real estate investor may have multiple properties and for each may receive only a small amount more than their loan payments on each house, but end with $200,000 in disposable income. Nevertheless, a non-stated income loan would decline this person since his, or her, debt to income ratio would not be in line. The same issue can arise with self-employed borrowers, where the bank with a fully documented loan would include the borrower’s business debt in their debt to income calculation. Stated income loans also help borrowers in cases where fully documented loans normally would not consider the source of income as being reliable and stable. Examples include investors who consistently earn capital gains.

Finally, fully documented loans also do not consider potential future income increases. (This is similar to the ‘no income disclosure’ loan).

So what’s the catch?

Plenty. There’s higher interest for one. Lenders are taking a huge risk by extending this type of loan to you, so they want to make sure it’s worth their while. They’ll be asking you for enormously huge repayments – think of double, if not triple the rates of the conventional loan. So consider that you’ll be forking out magnanimous repayments each month.

Then, there’s the higher chance of default. Banks cover their risks by assessing your ability to repay. In this way, they lower the chances of default. Unconventional lenders who hand out these stated income, or ‘no doc’ loans, basically accept anyone on his or her word. Most of these applicants tend to overstate their income falling into unwelcome levels of bankruptcy as a result.

In August 2006, Steven Krystofiak, president of the Mortgage Broker’s Association for Responsible Lending, reported that his organization had compared a sample of 100 stated income mortgage applications to IRS records, and found almost 60% of the sampled borrowers had overstated their income by more than 50 percent.

Fraudulent misuse of these loans had grown such that in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act, went into effect to restrict stated income loans. Section 1411 of the Act states: “A creditor making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability… “.

Today, lenders are conducting their own version of income and asset verification, but many borrowers can still slip past and into ruin. Court-cases, stress, and bankruptcy are some of the results.

The short of it is this…

Stated income loans are still offered by some small banks. Qualification requirements are based on stable employment, good reserves, good FICO and no less than 40% equity position in the property. Stated income loans are also offered by independent individuals who fund from their own pockets and may be more lax in their requirements. Stated income loan availability changes from state to state and from county to county. This kind of loan is ideal for self-employed individuals, or for those borrowers who do not have a stable source of income, as well as for applicants who have low credit scores, and applicants who do not want their income documents to be reviewed by underwriters.

The price is high, so if you find that intimidating you may want to consider taking the chance of going the conventional route.

Do you think stated income loans is the path for you?

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Bitget KCGI 2022 Officially Begins alongside Extended Registration

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Singapore, 19 May, 2022 –  Leading global derivatives exchange, Bitget, today announced its bi-annual trading competition – King’s Cup Global Invitational (KCGI), has officially begun. Due to overwhelming response since its launch, the deadline for registration has been extended. While the actual competition will still commence on May 20, 10:00 (UTC +8), participants can continue to register for the competition from May 20, 10 :00 (UTC +8) to May 24, 10:00 (UTC+8). KCGI 2022 will officially conclude by June 10, 10:00 (UTC+8). 

When registration for KCGI 2022 officially opened on May 9, a record number of 500 registrants were recorded, signifying a positive response for the long-awaited return of the trading competition for the Bitget community. As details of the competition continued to emerge, including the doubled prize pool as well as a variety of gifts offered as prizes, the number of users continued to increase. To date, more than 3,000 registrants have been recorded, representing a 500% increase since launch day. In light of such an overwhelming response from the community, and following the momentum of last year’s popularity, the registration window has now been extended by four days to May 24. Users with at least 300 USDT in their futures account at the time of application will be eligible to participate in this year’s KCGI.

During KCGI’s initial debut in 2021, more than 10,000 users participated. Responses from the community were largely positive, with more than 88% of users indicating that they would participate in the next edition of KCGI, and more than 79% of users stating they would share this initiative with other fellow traders. Trading competitions have proved to be innovative and interactive avenues to build and expand existing communities within the crypto space. By offering a separate opportunity and environment for users to engage in, alongside the possibility of earning fruitful returns, also reiterates the flexibility and endless possibilities available to traders within the space. 

Commenting on the official commencement of the competition, Bitget’s CEO, Sandra Lou said, “Leveraging on the growing influence of trading competitions, as well as the successful run of KCGI, we will continue our efforts in introducing more rewarding and enticing initiatives for our users to participate in. Most importantly, we look forward to giving our users more options when looking to diversify their investment portfolio. 

Sandra continued to add, “We are extremely heartened to see the overwhelming response from users during the initial round of registration. With this unprecedented move of extending the deadline, we are looking forward to seeing the competition unfold. Let the games begin!”

For more information on KCGI, please visit https://www.bitget.com/en/kcgi/spring/2022 

About Bitget

Established in 2018, Bitget is one of the world’s leading cryptocurrency exchanges. Currently serving over two million users in more than 50 countries around the world, Bitget accelerated its mission to promote decentralised finance in 2021 with a 500-strong workforce spanning over 20 countries. 

Since Bitget’s official launch in the crypto derivatives market in June 2019, the platform has now become one of the world’s largest crypto copy trading and derivatives exchanges, and is ranked in the top five globally by CoinMarketCap and CoinGecko for derivatives trading by volume. Bitget’s flagship product, One-Click Copy Trade, has attracted more than 20,000 copy traders, innovating the experience for crypto derivatives traders worldwide.

Adhering closely to its philosophy of ‘Better Trading, Better Life’, Bitget is committed to providing comprehensive and secure trading solutions to users globally, aiming to be the portal that transcends Web2 and Web3, that connects CeFi and DeFi, resulting in an expansive bridge to the vast web of crypto. In September 2021, Bitget announced its sponsorship of world-renowned football team Juventus as its first-ever sleeve partner and PGL Major’s official esport crypto partner soon after. Partnerships with the leading esports organisation, Team Spirit, and Turkey’s leading and long-standing football club, Galatasaray, were also announced in early 2022.

For more information, please visit:

Official website: https://www.bitget.com/en/

Telegram: https://t.me/bitgetEN

Twitter: https://twitter.com/bitgetglobal

LinkedIn: https://www.linkedin.com/company/bitget-global/

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Famous Futuristic George Gilder Weighs BSV Over BTC at Summit

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Bitcoin (BTC) Prices Hold Steady After a Severe Turmoil
  • The Summit is held annually to help investors discover new market trends.
  • Gilder highlighted the advantages of BSV over BTC to the current issues.

As per renowned futuristic George Gilder, a “dynamic Bitcoin” that has “really created a miracle in recent months,” BSV is on the verge of becoming the de facto standard for all global currency in the next five to ten years. The Famous futurist gave an online “Six Predictions Summit” presentation to a group of financial experts, highlighting the advantages of BSV over BTC as the answer to the current economic and technical issues.

Framework for New World Order Required

According to Gilder, “immutable, unhackable” Bitcoin and the blockchain have produced freedom from political control currency. “Dual hacking crises” (technology hacking and economic hacking) affect today’s globe. Still, they may be addressed by establishing a new global economy and laying a framework for new world order.

The Six Predictions Summit is held annually to help investors discover new market trends. Due to current travel and other constraints, this year’s event was hosted online instead of in person. Renowned investing trend spotters Jim Rickards, James Altucher, Ray Blanco, Zach Scheidt, and Alan Knuckman joined hosts Doug Hill and Matt Insley on the show.

George Gilder has referenced Bitcoin’s “digital gold” myth at several points. Aside from noting that “the original Bitcoin, BTC” and Bitcoin Satoshi’s Vision or BSV are distinct, he reaffirmed gold’s usefulness as a long-term store of wealth.

Gilder said:

“Bitcoin Satoshi Vision has really created a miracle in recent months, rather than the static Bitcoin, which people hold on for dear life. It’s a dynamic Bitcoin that moves with the advance of technology.”

Despite the fact he called BTC “Bitcoin”, “the original Bitcoin” was not the answer he was talking about. The asset was regarded by him as being of no use to anybody except speculators, terming it as static.

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Is the Future of Real Estate in the Metaverse?

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Is the Future of Real Estate in the Metaverse?

Although the metaverse is not a new concept, it has recently gained much more attention. Many are now becoming familiar with the idea, and are looking into what its future offers and how they can be a part of it. The metaverse will completely transform the current way of life for the average individual, affecting work, trade, entertainment, leisure, exercise, social interactions, and everything in between.

Apart from the retail players, big tech companies are also getting into the space. Facebook, the world’s most popular social media platform as of 2021, has recently rebranded to “Meta”, showing its commitment to this new space. According to an official announcement, rebranding was necessary because the company is shifting its focus to bring the metaverse to life. Footwear and apparel giant Nike is also preparing for the metaverse and has signified interest in creating its own space, as well as Adidas, another powerhouse brand.

The metaverse will transform many aspects of life by improving interpersonal interactions, establishing communities, and helping businesses grow. The climate required to create and operate a successful business will also change considerably. Firstly, the metaverse will allow businesses, regardless of size, to establish digital stores for their goods and services. A significant advantage of these capabilities for the average company is that opening a physical store is no longer necessary. This could significantly reduce overhead costs without having to sacrifice customer reach. In a virtual world, a company can tap into wider audiences beyond the physical boundaries imposed in a real-life setting.

There are also multiple metaverse use cases for the entertainment sector. For example, entertainment brands could use metaverse locations to preview music to excite virtual fans, holding mega concerts to listeners around the world. Furthermore, fans may also get the chance to meet and interact with their favorite celebrities, an opportunity rarely possible in the real world.

Additionally, people can gather for leisure activities in virtual parks to play or bond over shared interests and ideas. These locations could replicate attractions available in the real world, engaging all different types of users in the process. For instance, people can build teams based on varying activities, including everything from traveling, virtual combat, or playing chess. The metaverse will offer a slew of new opportunities for individuals and brands alike.

One of the less obvious but very promising advantages of the metaverse is the opportunity to capitalize on virtual real estate. Regardless of sector or industry, the shift to the metaverse still requires individuals and businesses to establish a presence on the metaverse; this is where virtual real estate comes in and plays its part.

All metaverse offerings, including commerce, healthcare, entertainment, and other sectors, must set up shop somewhere in the metaverse to reach their desired base. Individuals can also invest in virtual properties for various reasons, In parallel to the traditional real estate market, Investors can earn profit by purchasing properties and leasing them to businesses and other franchises. Investors can also simply buy virtual properties, hold them into the future, and later flip them for a potential profit. With 500 million dollars sold just in real estate in the metaverse, last year projections state that it will double this year!

The key to making the best out of a real estate investment is getting in early. As with everything else, early buyers catch on quicker and are in a better position to make a profit if and when the value increases. Investors are able to pick their property at floor price in a strategic approach that will allow the potential for a larger profit as well as an easier sale just as investors do in the traditional real estate setting. Users looking to get into digital real estate in the metaverse can start their virtual portfolio and begin with Ethereum Towers.

Ethereum Towers

Ethereum Towers is a community-centric vertical megastructure set in the Ethereum Worlds metaverse. Consisting of 4,388 separate apartments, Ethereum Worlds is a major player in the space available to investors interested in taking an early chunk of the metaverse real estate market as it grows. The apartments in the structure are in two identical towers, each with 101 stories. Each apartment is an NFT on the Ethereum network and is available as an ERC-721 token.

All owners in the Ethereum Towers can use their apartments however they please. Each owner can personalize their space how they wish, giving them full autonomy over their digital real estate asset. For this, the Ethereum Towers offers a marketplace with a wide range of accessories, furnishings, and ornaments that owners can purchase and set as preferred. Since each apartment is available on the Ethereum blockchain as an NFT, ownership is guaranteed and easily verifiable.

Due to the deliberate design, Ethereum Towers apartment owners and guests can explore the social benefits of a large community with similar interests. All residents partake in a virtual social experience supported by meaningful interpersonal interactions. Each tower possesses communal areas where owners can meet and interact, regardless of any preconceived boundaries that would limit interaction in the physical world. Through these interactions, users can build a strong sense of belonging and establish friendships along the way.

Perhaps the most significant advantage to Ethereum Towers is the investment opportunity it offers. In the metaverse, unlike in the real world, digital property assets usually have a much lower entry barrier, making it much easier for interested investors to get involved before the masses. The value of the apartments are projected to increase over time as meta living becomes more popular, providing early adopters a chance to capitalize on being first movers.

Getting In Early

Investors that have been able to identify ideas that dramatically impact the functionality of the future have always prospered. Those who understand the impact and utility around the metaverse too will have a major headstart within the benefits that this realm will offer. With Facebook being one of the largest and most successful companies taking action to rebrand itself as “Meta,” this should give investors a clear idea that a new significant era is on the horizon.

 

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