STATED INCOME

STATED INCOME LENDERS 

PRIMARY HOME STATED INCOME LOAN REQUIREMENTS

Stated income loans on Primary Home Approvals are based on Bank statement deposits for the most recent 24 months. The income you can use from your bank statements are determined by your profit and loss statement. The 24 month profit and loss you must provide is not audited!

Stated Income Documentation up to $1.5 million! 

  • 24 months personal bank statements
  • 24 months business bank statements w/P&L
  • Asset Xpress program – use assets as income
  • Asset Assist program – use assets as additional income
  • Lease agreement in lieu of Schedule E
  • Up to 50% DTI
  • Up to 85% LTV

HOW STATED LOAN PROGRAMS WORK? Stated income loans are ones in which the borrower discloses information but it is not verified by the stated loan lender. This allows the stated loan lender to process the loan much faster than a conventional loan. The stated mortgage applicant simply “states” what the income and must verity the income after expenses by a profit and loss statement. The profit and loss is used to verify the income after expenses so the borrower can qualify for the stated income loan. The stated information is used to calculate debt to income ratios for the loan, but the expenses are stated and never verified by the stated mortgage lender.

SELF EMPLOYED HAVE EXTENSIVE WRITE OFFS- Stated Income loans were designed for self employed borrowers that can’t prove their income through traditional means of documentation because of extensive write offs to avoid over paying taxes. Many self employed borrowers write off their income so they do not qualify for a traditional conventional mortgage.  Most self employed borrowers deduct as much as they can leaving little to show for a mortgage payment. This can be a challenge for self employed borrowers looking to purchase or refinance a home. This is exactly the situation that a stated income loan was designed for. When reviewing a stated borrowers rental history and credit history it usually  becomes clear that they are making enough money to pay all of their debts in a timely manner. This is a situation that would call for a stated income loan with the use verification of deposits through bank statements. Interest rates on stated mortgage loans are very similar on both stated mortgage programs and so the stated income loan  is normally the preferred choice.

FICO AND OCCUPANCY DETERMINE LOAN TO VALUE-Stated income lenders required that the borrower the type of work the borrower does for at least a full 2 years. The stated income loan is a great alternative with aggressive pricing for self-employed loan applicants that don’t wish to or cannot share their personal information. We look forward to speaking with you about your stated income loan request.

LINKS OF INTEREST