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Interest Only Mortgage

No Doc

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Stated Income Loan

Stated Income Loan products are the most commonly used and least expensive product in the reduced or no documentation suite of programs. A Stated Income Loan is often the perfect choice if you have verifiable employment (self employment is fine) and assets. Income that is stated on the application must be reasonable in terms of your occupation and assets 

The Stated Income Loan is the least expensive reduced documentation product if it works for you. If not, a No Ratio or true No Doc loan may be a better choice. The point is, with decent credit, I can guide you to the least expensive program which will work in your specific situation.

Available Stated Income Loan Terms

Stated Income Loan products are available as:

30 year fixed rate require only 5% equity however, rates are lower with more equity. 100% stated Income loan products are available for owner occupied, principal residences. Perfect credit is required but only 2 months of liquid reserves.

1, 3, 5, and 7 year ARMs are available. Home Equity stated income loan and Second Trust programs are available.

Allowable Use and Property Types

Stated Income Loan products are available for Single Family, Townhouse, some manufactured housing, and low rise condos. Some programs allow high rise condos 2-4 unit buildings, second homes, or investment properties but are slightly more expensive or require more equity. Allowable uses are for purchase or rate and term refinance. The programs will allow a "cash out" refinance but there are limitations on the allowable cash back. Please contact me with the specifics of your situation for guidance. If you are unsure a Stated Income loan is the right answer for you, I have included a page on traditional mortgage documentation requirements which may be useful.

The fundamental thing to keep in mind with true NO Doc Mortgages is that the lender only has your credit profile and property to evaluate. If your situation allows verification of either employment or assets you will save some money because you have lowered the lenders risk. The choice is yours.

Underwriting Guidelines

Some general guidelines for a Stated Income Loan.
  • Minimum middle credit score is 620
  • 5 credit accounts are required. 3 may be from alternative sources-utility, auto insurance, etc.
  • Bankruptcy and foreclosures must be discharged for 3 years with reestablished credit
  • Two years employment with same employer
  • Two months PITI reserves are required with an LTV <=80%. 6 months reserves are required otherwise.
  • 5% minimum down payment is required from your own funds. No gifts.

Learn more about stated income loan closing costs

Stated Income loan programs allow you to purchase or refinance a single family, townhouse or condo. An investment property Stated Income Loan can be a single family, 1-2 unit, townhouse or condo. Vacation homes also can be a single family, townhouse, or condo. The loan program can be used with our construction/perm program.

Many of my clients are converting from fully amortizing payments to a stated income interest only approach with a significantly lower monthly payment. I have some extensive information available. Read more to see if this powerful tool could work for you.

I have a page on calculating your qualification ratios.

* I have included a section on the new Cash Flow Stated Income Loan. A LIBOR or MTA based product which gives you complete flexibility in managing your mortgage.

Read more about Stated Income Loan Closing Costs

As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come.  Read more about this free, no obligation service.