| In the past couple of years, mortgages have | | | | during the lending crisis. Only in the last year have |
| been increasingly difficult to get approval for. This | | | | lenders begun offering stated income mortgages |
| is because of the great sub-prime mortgage | | | | again. |
| disaster that nearly took down the American | | | | If you are looking to apply for a stated loan, you |
| economy. Luckily we are on the verge of | | | | should consider a few things. Lenders who offer |
| economic recovery, which means that the flow of | | | | these loans are looking for borrowers to have a |
| money is beginning to loosen up. Stated income | | | | good credit rating and a good debt to income |
| mortgages are one type of loan that has | | | | ratio. If you have had any bankruptcies or |
| suffered as a result of the mortgage crisis. | | | | defaults in the past, most lenders will be unlikely |
| Due to the fact that no documentation loans are | | | | to offer you stated loans. |
| considered risky, many lenders stopped offering | | | | Stated income mortgages are designed to help |
| these loans. Another reason why stated loans | | | | people who own their own business or are |
| weren't offered was because of predatory | | | | contractors get approved for loans. These no |
| lending. Many lenders who were after a quick | | | | documentation loans still require the borrower to |
| profit offered stated income loans to people who | | | | show a couple years of tax returns, bank |
| shouldn't have been approved. As a result, | | | | statements and other detailed information relating |
| thousands of people defaulted on their mortgages | | | | to the loan. |