Stated Income Loan Requirements
Stated income mortgage lenders are making it possible for borrowers to purchase homes up to $3 million without proof of income with a minimum loan amount $125,000. Stated income mortgage lenders usually require a good credit score [FICO over 600] and a 30% down payment, but part of the down payment can be borrowed from the seller or from a family member. Interest rates for stated income home loans are slightly higher than conventional market rates, typically between 7% – 9%, however, a borrower can choose to refinance after 3 years into a conventional loan without any prepay penalty.
Benefits of Stated Income Loans (No Income Verification Loans)
A stated income loan does not have the same underwriting guidelines and delays as a verified income loan. A stated loan can usually be approved and funded within a very short period of time. A stated loan offers a fixed interest rate for the first 3 years. After 3 years, the interest rate varies, and there is no penalty for refinancing into another loan.
For borrowers who cannot prove consistent income, or do not show a lot of income on their tax returns, stated income mortgage loans provide a solution to qualify for a loan without the red tape and the frustration of a long underwriting process and the hassles of income verification. For business owners or self-employed borrowers working with cash, stated income loans self employed guidelines make it much easier to qualify for a loan.
For stated income loans California borrowing guidelines make it possible for the seller to carry back part of the loan and allow borrowers to purchase a home for up to $3,000,000 [three million dollars]. A family member or friend can also contribute part of the down payment for stated home loans. A borrower with 30% saved can now afford to buy a house up to $3 million with a stated income home loan, without having to provide tax returns, bank statements, and pay stubs. Now is a great time to buy a home! Prices are still rising, interest rates are still low, inventory is still looking good, and with a stated income loan programs, all it takes is a good down payment to qualify for the home of your dreams. Call today for a quick loan approval!