I was talking today with a woman referred by a past client.  She and her husband were in the middle of a 100% cash-out refinance on their home.  They have a small handyman business and need a “stated income” loan because their tax returns don’t show adequate income.  She was upset because her lender had quoted her 12% on her 2nd loan. 

After telling her she should feel lucky to get any kind of 100% stated income financing right now, I asked why it was so important to pull all of their equity out.  She replied that they had just paid $12,000 to go through an on-line school to learn how to flip properties, and they needed the money to get started.  In fact, she said, they were just dying to get started. 

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