Stated Income Loans Self Employed
The attributes of today’s individual looking for a mortgage loan are vastly different from the individual borrower of decade’s past. Due to a constantly changing socioeconomic environment, the workforce is experiencing higher levels of people who are self employed. In 2013, the total amount of independently employed people was 17.7 million, up from 16 million two years earlier. For these people, the chances of them receiving a conventional mortgage loan from a bank are slim to none. Rather, these people are forced to seek alternative financing sources to fund their real estate acquisitions. One type of non conforming loan is the stated income loans self employed loan type.
Stated income loans for self employed individuals are becoming more prevalent in todays real estate market as the number of self employed people rise. Lenders realize this demand and work to structure loans to fit the needs of these borrowers. In the case of the stated income loan, the borrower is allowed to submit a document that simply states their monthly income while the lender agrees to not verify that income amount. Rather, the lender expects a credit score of 680 or higher with a down payment of at least 25%. In return, the interest rates for stated income mortgages are higher than traditional mortgage loans. This is a reflection of the risks associated with lending a non conforming loan.
Borrowers and lenders need to do their homework in order to determine whether or not a stated income loan is the right way to go. Chances are, if you are self employed and your tax documentation does not correctly reflect your monthly income due to high levels of business expenses a stated income loan will be a viable option. Contact a mortgage broker to help determine what will work for you.
Contact HML Investments today to speak with a specialist about stated income loans self employed options