Stated Income Loans allow you to purchase or refi your home on your own terms.
Use your word.
With a Stated Income Loan, the lender takes your word for your income in the verification process, no longer requiring W2s or pay stubs.
Use your self-employment income.
It’s tough to get a handle on your yearly income when it goes up and down, but that’s no reason you should have to avoid buying a home altogether.
Simplify your budget every month.
With a Stated Income Loan, you’ll have access to a mortgage loan that can be consistent over time, meaning you don’t have to worry about the rising costs of rent.
Give yourself confidence.
With your housing taken care of, you can build a budget with an irregular income that helps you keep your savings and spending consistent from month to month.
The Facts about Stated Income Loans
- You don’t need to show pay stubs. If you don’t have pay stubs due to self-employment and other situations, a Stated Income Loan will not require them.
- Use your quality financial history to secure a loan. Since lenders won’t be looking at pay stubs and W2’s, they might look to other points of interest, such as having two years’ of experience in self-employment or a good debt-to-income ratio when it comes to your personal finances.
- Leverage a high-quality credit score. Always had good credit but never had an opportunity to use it for big savings? A higher credit score with a Stated Income Loan can mean paying far less in interest.
- Invest in more investment property. For unconventional investors, you might not have W2’s and pay stubs. However, lots of people use Stated Income Loans to demonstrate that they’re still qualified to make purchases, such as buying up investment property.
Get over the hurdles for qualifying for a traditional mortgage with a Stated Income Loan.
FAQ: What Do You Need to Know about Stated Income Loans?
Q: What is a Stated Income loan?This is much like a traditional loan, with some very clear exceptions. A Stated Income Loan means the lender will not seek out W2’s and pay stubs when it comes to determining your qualification for the loan.
Q: How do I qualify for a Stated Income Loan?You’ll still want to be able to demonstrate good money management and stable employment history. That usually means at least two years of self-employment, for example, and having a high-quality debt-to-income ratio, which means that you can manage the payments on the loan for which you’re applying.
Q: What should my credit score be?It helps to have a higher credit score, especially since income verification isn’t the issue here. Generally, you’ll want to have 680 or higher on your credit score, but make sure that you inquire about other options if your credit score is lower.
Q: What kind of down payment can I expect to make?The down payment tends to be larger than a traditional mortgage, but not necessarily. A higher credit score and more favorable financial qualifications can mean that your down payment will not be as high as it might be—in some cases, a borrower may only be required to put 10% down.
Q: Does it help if I have plenty of cash on hand?It does. Not only is this better for the down payment, but it usually means a lower debt-to-income ratio, which is another factor here. Also, these loans tend to have a maximum of 70% in loan-to-value ratio.
Get Started with Your Stated Income Loan Today
The American dream isn’t limited to those who have consistent incomes.
Whether you’re self-employed or make money in less traditional ways (such as flipping houses), a stated income loan can be a great way to pave your own way to financial success..
Make sure you take care of your finances and that you keep cash on hand to qualify for a Stated Income Loan, and it just may reward you.