Private Lending: Stated Income Mortgage Lenders
The market for mortgage lending has experienced an ongoing evolution since the mid 2000’s. Following the mortgage meltdown, markets have become more and more regulated with new legislation being drafted regularly aimed at protecting borrowers and constraining lenders. While the Federal Reserve has persistently kept interest rates low, the next year will prove to be another test for the mortgage market as the Fed tapers its secondary market involvement. Amid fears of sky rocketing interest rates, borrowers are looking to borrow while interest rates are still low, while investors seek to take advantage off opportunities for arbitrage in the real estate market. The trouble is, getting approved for a mortgage loan from a bank has become a much more difficult task. With greater lending constraints, borrowers must possess a sterling credit history along with sufficient tax and income documentation. This often proves impossible for many borrowers, leading them to seek out alternative financing programs. Among the lenders offering alternative financing products are stated income mortgage lenders.
Stated income mortgage lenders like HML Investments focus on providing alternative financing programs like hard money and stated income loans to borrowers who do not meet the standards set by banks to acquire a conventional mortgage loan. Stated income loans offer financing for people who are self employed or whose income is largely comprised of tips and commissions. This type of loan allows the borrower to simply state their monthly income with the understanding that the lender will not verify that income. Instead, the lender requires a credit score of at least 680 and a verified income source for the past two years. There is less documentation required for a stated income loan, making the loan process quicker. Stated income loans also carry a higher interest rate than most conventional loans.
Call the specialists at HML Investments today for more information about stated income mortgage lenders.