Why Stated Income Mortgage Loans?
With mortgage lenders loosening their belts on lending requirements, millions of Americans now have the opportunity to enter into the real estate market through stated income mortgage loans. While the days of reckless lending are gone after the 2008 financial crisis, the strict rules on reported income when acquiring a mortgage loan have been alleviated as a result of the recent re-emergence of stated income loans. Many Americans unable to access conventional loans (such as those who are self-employed or cannot provide the required tax documentation) now can strike a deal with mortgage lenders through the use of stated income loans.
The Stated Income Loans Process
When a potential homeowner begins the process of applying for a stated-income loan, several issues must be considered by that borrower’s broker. A high credit score, at 700 or higher, will typically suffice, but it’s also vital for borrowers to provide proof that they can afford the given property. Bank statements that outline a significant balance — usually determined by calculating six months’ worth of ownership expenses — can be an important piece of the stated-income application puzzle.
Coupled with a solid credit rating, exhibiting the ability to maintain large bank balances can help instill confidence in your lender that the borrower reliably can afford and maintain the property in question. Additional documentation, such as a Social Security card and a driver’s license, is also necessary.
Mortgage brokers and originators may be surprised to learn that the stated-income loan process is often much faster than the average mortgage loan. Regardless, these loans are typically 30-year, fixed-rate mortgages with an interest rate that is usually near 4.5 percent.
Where to Start Your Search for Sated Income Loans
Contact our specialists at HML Investment today for further information regarding the possibilities of Stated Income Loans.