#stated income loans
What Are Stated Income Mortgage Loans?
A Stated Income Home Loan is a loan program that does not require borrowers to document their source of income to the lender although they declare it on their application. Therefore, borrowers who receive a W2 or 1099 form (for self-employed or independent contractors) at the end of the year do not have to provide that document to gain loan approval if all other criteria are satisfactory to the lender. IRS tax returns for personal or business are also not required. Borrowers will just state their income on the loan application and rely on their credit score, assets, and occupation type for approval. Some lenders refer to this loan type as a No Income Verification Loan (NIV).
Stated Income Verified Assets Loan: (SIVA ) Borrower approval is based on your credit history, verifiable liquid assets, and of course the income you input on the application. If your income is X amount, then the verified assets should correlate to the income the borrower(s) puts down on the application. As a niche loan( Non-QM), this program is limited to certain states, requires equity ranging from 20% to 40% down for purchases and refinance.
For example . let’s say an owner-occupant applies for this niche lite doc loan, they can purchase a $625,000 home with 20-percent down or a $1.3M single family residence with 30-percent down.
Are These Loans Available in My State?
Portfolio lenders here can help borrowers get a low doc loan in major California cities which include Los Angeles, Irvine, San Diego, Santa Barbara, San Jose, Sacramento, and San Francisco. Also available in Illinois, New York, New Jersey, Massachusetts, Washington, and Texas. For other east coast states, we’ll send you a list of lenders there who provide low doc loans.
3/1, 5/1 and 15 Yr ARM
Rates start at 3.75 to 5.5%
70% financing up to $1.5 million – primary residence
65% financing to $1.5 mil for investment property
Minimum Loan Amount: $417,000
Reserves as low as 6 Months
Self-employed and W2 OK
Cash back refinance up to $300k
It s worth noting that many of the flexible terms and guidelines for this program has changed since 2008 and become a lot stricter due to borrower defaults. For example, to refinance your home on a stated income mortgage, homeowners will now need 30% or more equity and the same rule applies for a purchase; 30% or more down payment. In states that badly need them like California, New York, and Texas, the availability has been reduced even more due to the Dodd-Frank Financial Reform Bill which makes them illegal for a lender who insures the loan. To offset the lack of availability, there are a few portfolio lenders and small regional banks that still offer them, just not the large financial depository institutions like Bank of America and Wells Fargo Bank. Please discuss your loan options with a designated NMLS licensed originator or lender.