Does anybody know about a new law in Minnesota about getting rid of stated income mortgages?

My wife and I are going to be moving this summer in order to attend a nursing school in Northern Minnesota. The houses that are available in our price range are either money pits or just plain old nasty. So we have decided to build a small 1,400 sq. ft. house that is designed the way we want it and is clean (unlike the other houses in the area) anyway we have run into a problem. Because we are full time students the only mortgage we are able to get is a stated income mortgage, meaning we don't have to prove that we are going to have steady incomes when we move. Well, I got a call from our mortgage lady last week and she said the Minnesota congress just voted to pass a law making these types of mortgages illegal. She said we need to close on a home soon before the Governor signs this into law in order to get anything. Does anybody know anything about this? How long after the Governer signs this will it take effect? Where could I call / write to get more info? Congressman?Does anybody know about a new law in Minnesota about getting rid of stated income mortgages?
Having done a little research...it looks like this bill is a possibilty but far from definite.





The recent subprime market fallout moved mortgage lending to the forefront of the news lately.





Here is what the st. paul pioneer press stated,





'; The primary Swanson-based bill, sponsored by Rep. Jim Davnie, DFL-Minneapolis, is too ambiguous and restrictive, Abed said.





The bill doesn't make clear what is or is not suitable financing for an individual and would make it very difficult for brokers to make stated-income loans 鈥?loans, he said, that are appropriate when borrowers are self-employed or earn inconsistent commissions. Also, tightening up the 5 percent cap on all fees related to making a mortgage would make it almost impossible to write loans under $100,000, he said.





That also worries Lisamarie Sanchez Leadens, a Maple Grove broker who runs a school for mortgage brokers and bankers.





She worries that the bills would make home loans harder to get and cut off minority and low-income families from home ownership.';





Here are two links to articles:





http://www.care2.com/c2c/share/detail/329191





http://www.startribune.com/587/story/1068670.htmlDoes anybody know about a new law in Minnesota about getting rid of stated income mortgages?
As a mortgage broker in Minnesota, this law has been passed around the office in one of the company emails. This is not a sales tactic used by your loan officer. I would look for other mortgage programs that may be able to suit your needs.
It sounds like a cheap high pressure sales tactic.





Lots of small business people qualify for mortgages using stated income loan products. If Minnesota ever passed such a law it would be a nightmare.





You might want to shop for another lender.