| Stated income mortgage loans- A stated income | | | | mortgage for W-2 employees because they are |
| mortgage loan was designed for borrowers who | | | | allowed to state income that could easily be |
| can't verify their income with traditional income | | | | verified. Lenders normally require 2 years |
| documentation, typically these borrowers are | | | | employment in the same line of work for W-2 |
| self-employed or work for tips have seasonal | | | | stated income loan borrowers. |
| employment or work on commission. A stated | | | | Stated loans are great mortgage loans for self |
| income mortgage loan is a good option if you | | | | employed commissioned borrowers to buy and |
| would have difficulty proving your income. The | | | | refinance homes but the mortgage industry is |
| income that you state on the mortgage | | | | tightening the guidelines on them because of the |
| application must be average in your occupation | | | | rampant fraud associated with stated loans and |
| and assets are generally verified. This means that | | | | high also the high foreclosure rate of stated loans. |
| if you are a waitress and you say you make | | | | Lenders are gambling on home owners to pay |
| $10,000 a month it may raise some eyebrows in | | | | there mortgage, knowing that most of the risk is |
| underwriting. Stated Income Loans are available | | | | transferred to the secondary market who |
| with credit scores as low as 580 so perfect credit | | | | purchase the loans in large groups. Although |
| is not always required. | | | | currently, with the increasing number of |
| Stated income mortgage loans can be used to | | | | foreclosures in America, it is now almost |
| purchase a home, to borrow equity or to | | | | impossible for first time home buyers to get |
| refinance an existing mortgage. Stated income | | | | approved for their first time home purchase using |
| mortgage loans are offered on standard fixed | | | | a stated loan and no money down. |
| rate mortgages, adjustable rate mortgages and | | | | If you have income that is hard to prove because |
| interest only and pay option type mortgages. A | | | | of commission based pay, seasonal work or from |
| stated income loan does requires a slightly higher | | | | self employment, stated income loan programs |
| credit score to qualify for the same loan to value | | | | can help you borrow money to refinance or |
| percentage as a comparable fully documented | | | | purchase a home money at competitive rates. |
| loan program. Stated income mortgage loans can | | | | But remember that just because you are stating |
| be applied for by for self employed as well as | | | | your income does not mean you can inflate your |
| W-2 employees, but in most cases wholesale | | | | income to buy a bigger home. |
| lenders will increase the interest rate of the | | | | |