Private Lending: Stated Income Mortgage Loans
The Federal Government recently announced that it plans to taper off its purchasing of mortgages on the secondary market. This decision has left those in the mortgage business very concerned on how this will effect mortgage rates. Following the subprime mortgage crisis, investors were less willing to invest in mortgages on the secondary markets at lower rates. As a result, the government had to fill the void by purchasing mortgages in an effort to prevent rates from skyrocketing out of control to the point that property would become too expensive to own. With the government gracefully exiting the secondary market, private lenders are offering products such as stated income mortgage loans in order to meet demand.
While it is uncertain what is going to happen to interest rates and how the general investment community is going to respond as a whole, there is one thing that is certain: there is still demand for mortgage loans. There is a rising demand for private money to fund real estate deals as the market continues to appreciate in areas such as California. Private money lenders like HML Investments are offering alternative financing products for borrowers and investors. One such product is the stated income loan. With a more flexible framework designed for the borrower who cannot provide tax documentation to meet conventional lending standards, the stated income loan is a vehicle for offering financing based on said income and employment history verification. With slightly higher rates, investors are willing to risk their capital to trustworthy borrowers carrying high credit scores and equity.
Contact the specialist at HML Investments today for further information regarding stated income mortgage loans.