Stated Income Mortgage Loan
If you are looking for a mortgage loan and are having difficulty acquiring traditional bank financing, non-bank financing may be right for you. For many borrowers, gaining approval for a conventional bank mortgage loan can be a challenge. Whether it be for reasons involving credit issues or lack of income documentation, banks have stiff regulations preventing them from lending to these deficient borrowers. If you fall without this realm, there is a brighter side to the story. There are lenders out there today that specialize in non-bank alternative financing for people unable to fit the mold for conventional lending programs. These lenders provide a range of loan programs, one of them being the stated income mortgage loan.
A stated income mortgage loan is a type of loan whereby the lender allows the borrower to submit a document which states the monthly income of the borrower. In return, the lender will not validate the income, rather the lender is concerned with other factors that will affect their decision for approval. Stated income mortgage lenders today have tighter lending standards than they did before the housing market crisis. Although stated income mortgage loans played a role in the crisis, it was the unscrupulous lending practices performed by unethical lenders which led to high default rates. That being said, lenders today require minimum credit scores (680 or higher) and income sources to be verified before a stated income loan can be approved. Also, it is important to note that stated income loans come at a price, that is to say interest rates are higher than one might find with a conventional bank loan. If you are looking to purchase a home and your tax documents do not properly reflect your income, a stated income mortgage loan may be right for you.
Call the specialists at HML Investments today for more information about how to get started on your stated income mortgage loan.