This is a big help for borrowers like real estate investors house flippers wanna be landlords and self employed borrowers looking to purchase a non occupant property and qualify for a loan without fully documenting their income or providing tax returns. These were borrowers who couldn t fully document their income explained tom hutchens svp of sales and.
Technically you are not just merely stating your income but rather using an alternative means to verify your income both personal and business bank statements may be used.
Stated income home loans. Instead borrowers are simply asked to state their income and taken at their word. In the past stated income mortgages were home loans that did not require income verification or documentation. These new stated income mortgage loans are often referred to as bank statement loans alt doc loans or alternative income verification loans.
Lenders just needed a borrower s stated income hence the name stated income loans. Today the reduced documentation requirement will be 12 24 months of your bank statements. In the early days of stated income loans they were popular among self employed borrowers.
Unfortunately these risky loan types contributed to the 2008 housing market crash and banks stopped issuing stated income loans as a result. These loans are sometimes called liar loans or liar s loans. Stated income loans were originated by ameriquest.
This can be both personal and business bank accounts. We offer stated income loans and jumbo loans from 150k to 7 5 million. In the past stated income mortgages were home loans where lenders did not verify or document income at all and were called stated income loans because lenders used the income stated on a loan application to issue a loan.
Are stated income loans still available. Typically this borrower has a lot of tax deductions and writes off a lot of expenses therefore on paper the net income is too low to be used for a conventional loan program. We re based in southern california and can lend nationwide.
What is a stated income home loan. A stated income loan is for someone who is self employed. A stated income loan is a mortgage where borrowers provide reduced documentation and qualify by using bank deposits as proof of income.
This simplified method was originally intended for self employed borrowers with complicated tax schedules. Excellent alternative to hard money private money lender s. Stated income loans started to rise in popularity in the early 2000s.
We re a favorite among self employed business owner s and investor s unable or unwilling to use their tax returns to qualify for a mortgage. In short stated income loans allow borrowers to simply state their monthly income on a mortgage application instead of verifying the actual amount by furnishing pay stubs and or tax returns. What is a stated income loan.
A stated income loan is a mortgage where the lender does not verify the borrower s income by looking at their pay stubs w 2 forms income tax returns or other records. What is a stated income loan. While stated income loans don t exist for owner occupied properties they re still available for borrowers looking to purchase an investment property.