Stated Income LoansFHA LoanConventional LoanReverse Mortgage LoanHARP Program
Stated Income Loans
Stated income loans may be the best loan program for small business owners and self-employed individuals, or for someone who declares low income on their income taxes. To qualify for this loan, a borrower needs a good credit score and 30% down payment for a purchase or 30% equity for a refinance. To be approved for stated income loans, borrowers are not required to verify any type of income or work history to be qualified. The stated loan is the only loan program that does not require income verification.
Benefits of Stated Income Loans
No income verification required! We do not need your income tax returns, your IRS form 4506t, your Business License, nor your CPA letter stating anything about borrower’s employment.
Bank Statements can be used to ascertain cash flow.
Gift funds are acceptable as part of the down payment for a purchase.
Stated loans fund faster than verified loans since stated income loan programs have fewer restrictions.
Fixed interest rates for 3 years, averaging 7% to 7.75%
No penalty for refinancing into another loan program after 3 years
Borrow up to $2 million – very high loan limits
How to Qualify for a stated loan
The key to qualifying for a stated home loan is having enough money for a down payment or having enough equity for a refinance. Appraisals determine the value of the property, but the lender requires their own appraisal, and the values tend to come in at the low end of the spectrum. Our team is here to answer your questions and help you to get a stated home loan today. We will help you get a pre-approval within 24-48 hours on the very first call.
A Federal Housing Administration Insured loan, FHA loan is one of the easiest loans to qualify for. FHA loan guidelines require a steady job history of two years or longer, down payment as low as 3.5%, and the program has a very low credit [FICO] score requirement.
Benefits of FHA Loans
Government-insured or guaranteed
Down payment assistance programs available
Low down payment requirement, 3.5% of the purchase price.
Gift funds can be used up to 100% of closing costs and down payment
Down Payment Assistance Available to 103%!
FHA 203K loan (rehabilitation and repair included), additional loan for home repairing.
A conventional loan is not insured or guaranteed by any government agency. These loans are traditionally sold to Fannie Mae or Freddie Mac. The loan typically requires a minimum of 3 to 5% down paymentConventional loan guidelines typically require a stronger credit score as well as reserves (money in your bank account after the close of escrow). Most lenders require reserves equal to 2-6 monthly mortgage payments in their bank account. A conventional loan makes sense if you have built up savings and want to take advantage of little to no private mortgage insurance (PMI) as compared to FHA MIP.
Benefits of Conventional Loans
No maximum loan limits
Does not require the property to occupied by the owner (great loan option for investors)
Quickest loan approval for a homeowner who wants to purchase a second home
Various programs and terms available to meet each borrowers needs
Down payment assistance programs available
Reverse Mortgage Loan
A reverse mortgage is a loan which is only available to borrowers that are over 62 years of age with substantial equity in their home. Reverse mortgage loan programs allow borrowers to draw money from the home’s equity without a monthly mortgage payment to pay back the loan. It is helpful for borrowers who find themselves in a situation where they want to stop making mortgage payments, supplement retirement, improve cash flow, make other investments, or simply have more funds to afford the cost of living.
Benefits of Reverse Mortgage Loan
Can borrow large sums of money without having to pay a monthly mortgage payment
You can stay in your home until you decide to move, sell or in the event of death a decision can be made to pay off the loan and retain the home for your estate.
No credit score requirement
The Home Affordable Refinance Program (HARP) is a federal loan refinance program that was introduced in March of 2009. The program was designed to help homeowners refinance their loan at current market rates; even if the home is upside down [worth less than the amount of the loan]. HARP loan rates are very low and can save a borrower hundreds to thousands of dollars per payment. The highlight of the HARP program is that there is no equity required, unlike a normal refinance, and no matter how underwater the property is you may still qualify; as long as you have been making mortgage payments on time for the past 12 months and your loan is owned by Fannie Mae or Freddie Mac.
Benefits of HARP Loan
No appraisal required
Benefits borrower’s that obtained loan before the May 31, 2009 deadline.