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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
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.
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
- 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
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
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.