If you’re self-employed or have a complicated income, you may find it difficult to get approved for a mortgage. This is where stated income mortgage loans can help.
These loans are designed specifically for people with unique income situations, and they don’t require you to provide as much documentation as traditional mortgages.
In this blog post, we will discuss the basics of stated income mortgage loans and how they can help you get into your dream home!
WHAT IS A STATED INCOME MORTGAGE LOAN?
A stated income mortgage loan is a type of mortgage loan that does not require the borrower to provide documentation of their income.
Instead, the borrower simply states their income on the loan application. This can be helpful for borrowers who are self-employed or have complex incomes that would be difficult to document.
It’s important to note that stated income mortgage loans typically come with higher interest rates than traditional mortgages, so you’ll need to weigh the pros and cons before deciding if this is the right type of loan for you.
CAN YOU STILL GET A STATED INCOME MORTGAGE?
Yes, you can still get a stated income mortgage loan in certain situations.
However, they are becoming increasingly rare as lenders have become more stringent in the wake of the housing market crash.
If you’re interested in obtaining a stated income mortgage loan, you contact Lending Warehouse.
HOW TO QUALIFY FOR A STATED INCOME LOAN?
The qualification requirements for a stated income mortgage loan are typically more relaxed than those for a traditional mortgage.
- This is because the borrower is not required to provide documentation of their income.
- However, you will still need to have a good credit score and a down payment of at least 20% in order to qualify for this type of loan.
- Additionally, you’ll need to have enough equity in your home to cover the loan amount.
WHAT ARE THE BENEFITS OF A STATED INCOME MORTGAGE LOAN?
There are several benefits of a stated income mortgage loan, including:
- You won’t need to provide documentation of your income, which can be helpful if you’re self-employed or have a complex income.
- The qualification requirements are typically more relaxed than those for a traditional mortgage.
- You can get into your dream home without having to worry about your income level!
DISADVANTAGES OF STATED INCOME MORTGAGES?
There are a few disadvantages to consider before taking out a stated income mortgage loan, including:
- The interest rates on these loans are typically higher than those for traditional mortgages.
- You may have difficulty refinancing your loan down the road.
It’s important to weigh the pros and cons of a stated income mortgage loan before deciding if it’s right for you.
HAVE STATED INCOME MORTGAGES CHANGED SINCE 2008?
The underwriting procedure was exceedingly lenient before to the housing crisis. A stated income program used to be open to everyone, but that is no longer the case. These loans were offered to customers regardless of their credit history or the loan-value ratio.
In today’s stated-income mortgages, underwriting is required. Lenders set a minimum and a maximum credit score and loan-to-value (LTV) ratio.
LENDING WAREHOUSE CAN HELP YOU
If you’re interested in obtaining a stated income mortgage loan, Lending Warehouse can help.