Stated income home loans are home loans that do not require extensive documentation of your income. These home loans are often used by self-employed business owners, investors, retired and other home buyers that are not employed in a traditional job.
Stated income home loans developed a poor reputation due to the subprime mortgage crisis of 2007-2008 however they are beginning to resurge as a loan option for some home buyers. The standards for stated home loans have changed and in the current market you will be required to have a good or very good credit score in order to qualify for a stated income home loan. A larger down payment is usually required for this type of home loan.
Stated Income Home Loans – Basic Concepts
1. You are allowed to state your income on the loan application without documenting your income. This is helpful for self-employed home buyers and others that are not employed in a traditional job.
2. A good or excellent credit score and credit history will be required to qualify for a stated income home loan in the current market.
3. A larger down payment may also be required.
4. Borrowers for using stated income home loans will need a larger number of assets and cash reserves. If you have extensive investment holdings or other assets you may be a good candidate for stated income loans.
5. Stated income home loans work well for self-employed business owners, small business owners, investors and retired home buyers.
Despite the reputation from their past stated income home loans are an effective tool for many home buyers. If you are self-employed, retired or an investor the stated income home loan option may be just what you have been searching for.
We have a variety of stated income loans available. If you are ready to apply please complete the pre-approval form below.