Stated Income Mortgage Loans
Under normal circumstances, borrowers seeking a mortgage loan from a conventional lender will provide a slough of documentation including tax forms and income documents during the application process. The truth is, things do not always play out under normal circumstances. With stated income mortgage loans, the borrower is required to state, rather than provide documentation, of their income. For this reason, stated income loans were also referred to as “liar loans” because people would lie about their income in order to receive a loan, and the lenders (without doing any due diligence) took the borrower at their word. This reckless and irresponsible behavior leading up to the housing market crash in 2008 gave stated income mortgage loans a bad rap, but that is no longer the case.
Recently, stated income mortgage loans have been gaining steam as lenders look to meet the demand by borrowers seeking alternative sources of financing for their mortgages. Under new rules and regulations, along with new legislation being passed which is due to go into effect at the end of the year, stated income loans are being offered by lenders to those people for which the loans are intended. While interest rates remain at record lows, not everyone can benefit from those conventional loan programs being offered by conventional banks. Property values are increasingly becoming more valuable and people are looking to alternative sources of financing in order to enter the market. Lenders like HML Investments are offering competitive rates on their stated loan programs, giving people the opportunity to acquire a mortgage and move ahead with their real estate purchases.
Contact the specialists at HML Investments for further information regarding stated income mortgage loans.