The housing market is going up, and that is not the only thing. The number of self-employed americans is also on the rise with nearly 10 million Americans being self-employed according to the Small Business Association. For those self-employed and investors looking for a mortgage loan this is great news. The increased demand for mortgages has led to increased efforts made by mortgage lenders to capture the growing market of self-employed Americans looking for mortgages. Their response has been the stated income mortgage loans.
Prior to the 2008 financial crisis, mortgage lenders did not regularly verify the income in a stated income mortgage loan. Today, lenders make an effort to verify the portion of income stated on the loan in order to resist the destructive tendencies of making haphazard loans to risky borrowers. Self- employed borrowers, along with salaried employees must be in the same line of work for two years. In addition, borrowers will need to provide further documentation including proof of assets in determining the down payment, while also providing proof of cash reserves.
As the U.S. economy continues on the path to recovery, property values will continue to act in parallel. Those self-employed Americans who contribute to this economic growth no longer have to fret about their exclusion in the housing market due to the nature of their earnings. If you feel you are one of these individuals eligible for a stated income mortgage loan, contact HML Investments today and speak with one of our specialists to get more information on how you can take part in today’s housing market boom.