[jennyjenny]

Banks don’t give loans on expectations. They also base loans on documentation, 2-3 years worth of W-2s. The Obamas list $207,000 on their 2004 W-2. He made less in ‘03 and ‘02.

It looks like he also had 20% ($300,000+) down on this new house in early 2005. Maybe he got a huge advance on his book in January or February 2005? Sounds like the bank had a lot of hope for some change.

[jennyjenny]

I suppose he could have taken out one of those “No Doc” loans, in which case the rate is even more suspect.