Prior to the 2008 mortgage melt down, stated income or no income document loans were the norm. Flash forward to present day (September 2017) and they are rare. Very rare. So, what is stated income and who qualifies? Here is a quick breakdown of stated income and who qualifies to use it.
- Assets are a must. 6 months principal and interest required in assets/reserves for owner-occupied purchases <$1 million, 60% loan-to-value. 12 months assets required for greater than 60% loan to value, less than $1m purchase price.
- Minimum FICO credit score 700.
- STATE your income and provide assets in the form of bank statements.
- Rates and loan programs are competitive. Since there is more risk involved for the lender based on not using a borrower's income documents (no tax returns, W-2's, pay-stubs required), the loan program offered is an Adjustable Rate Mortgage (ARM). Fixed for a set period 3, 5, 7, 10 years, adjustable annually thereafter with a cap and amortized over 30 years. Inquire with a TRU Financial Services loan officer for details on current rates.
- Primary, second home and investment loans available.
- U.S. citizen, permanent resident, non-permanent resident, and foreign nationals are eligible to apply.
*Stated income parameters are subject to change. Not all borrowers will qualify. Consult a qualified, licensed mortgage professional.
The stated income loan product can be used to assist borrowers that are self-employed or earn bonus and commissions, subcontractors and W-2 wage earners. A FREE consultation with a loan officer that offers stated loan products could determine eligibility. Many of the same loan document requirements minus income documentation are required for these loans.