Stated Income Mortgage Programs
If you are a self employed borrower, or someone who is having trouble documenting your income, stated income mortgage programs could be your ticket to a mortgage loan. Typically intended for self-employed borrowers, the stated income loan is a mortgage where the lender does not verify the borrower’s income by looking at their w2’s, tax records, pay stubs, or other documentation. Borrowers are simply asked to state their income by submitting a signed document.
Given the nature of these types of loans, the lack of verification for stated income loans have made them a simple target for fraud in years past. In todays market, stated income loans are reemerging under different guidelines. Previously known as “liars loans” stated income loans were pervasive in the lead up of the mortgage meltdown, which ultimately led to the financial crisis beginning in 2007/2008. Now a days, lenders hold borrowers of stated income loans to a higher standard, requiring minimum credit scores of at least 620 and lower loan to value ratios.
Don’t let stated income’s reputation steer you away from benefitting from the opportunities that lie within them. The number of self employed borrowers in todays economic arena are rising, and so are those who have difficulty documenting their income amounts. Acquiring a conventional loan from a bank can be a struggle for many, especially those who have the income or cash but lack documentation or credit. Take advantage of alternative financing from stated income lenders and move ahead with your real estate venture.
For more information about our stated income mortgage programs, contact the specialists at HML Investments today.