I have over 100K in credit available, and have NEVER been asked for proof of income. In fact, my income is far below 1/8th of my credit line. I can probably buy a Rolls Royce with credit, which is the same value as many properties. When I first applied for my credit card ever I was instantly approved for $2,000.00 and was never asked for any proof that I earned even a single cent.
I now have 9 credit cards with a total of over $100,000.00 in credit and an excellent credit score.
That's all wonderful and all, but then I go and apply for a down payment loan on a home and get bombarded with proof of income requests for $8,000.00. What? I have gotten approved for credit cards higher than that with no request of income proof -- and I've manually asked for various credit limit increases without request for proof of income either. Why would a lender for a down payment want proof of income for a house when a credit card issuer gave me more and doesn't care?
There would be less risk since it's less money. That's like a guy asking for evidence that I can repay $2 when another guy just happily hands over $20. Why the hell would the $2 guy want proof? Where does he get off asking for it? If someone else is giving me more and not requiring that I prove I can repay it (stated-income loan), what reasoning would one have to get proof for less?
Could I use this argument as a basis that they have no reasoning to request proof of income, if another lender (credit card company) would give me more without proof of repayment?
Should I borrow a home loan from a credit card company then? Or what's the catch here?