Stated Income Loan Programs
Are you self employed? Are you unable to meet the rigid requirements put forth by conventional lenders during the mortgage loan application process? Do you have cash flows that go undocumented that you would like to put toward a piece of real estate? If you can answer yes to these questions, then opting for stated income loan programs may be the best route for you to take when seeking a mortgage loan. Lenders now a days are seeing a spike in the demand for stated income loans as the economy continues its march toward recovery and the housing market builds steam. As a result, rates are becoming more and more competitive which means good news for borrowers.
What is a stated income loan? Simply put, stated income loans are a “no doc” loan that requires the borrower to state, rather than provide income documentation, on a loan application. A popular type of alternative financing product, stated income loans allow those who cannot provide the necessary documentation (such as tax forms and income statements) required by conventional lending methods to acquire a mortgage loan for residential or commercial real estate.
With stated income loans, there is an added level of risk by not submitting income documentation, so lenders charge a higher interest rate compared to “full doc” loans. Also, lenders typically look for higher equity in the property or a bigger down payment. Because less documentation is required in the stated income application process, loans can be made much more rapidly and are more flexible, giving the borrower or investor a competitive advantage when closing a deal. Stated income loans are a viable alternative to conventional loans in that they help responsible borrowers take advantage of the many real estate opportunities out there today.
Contact the specialists at HML Investments today for further information regarding our stated income loan programs.