Stated Income Home Equity Loan

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Are you held back from purchasing your new home because you are unorganized and lose track of your documents? Stated income home equity loans as loan that allow you to state your income in the application. This means that you don't have to produce documentation to prove your income, you merely have to state your income.

Stated income loans are becoming more popular because they are easier to fill out and take less hassle than traditional loans. When you are applying for a stated income home loan, the lenders will you look at your credit rating as an estimate of your ability to pay back you loan. This means that if you want to qualify for a stated income loan you should ensure that you have a pretty good credit rating. Lenders also want to see that you have had steady employment for the past while.

One thing that lenders will do is check your stated income with the industry average and see if they match up. If your stated income is much higher than the industry average your loan will be declined. This is to ensure that you are not overstating your income and are being accurate in your application. Your employer will also be contacted to verify that you are still employed.

There are two types of stated income loans. The first type is call a SIVA (stated/income, verified/asset loan). Just like the name suggests, in this loan application you can state your income, but you must show proof of the assets you own. The second type of loan is a SISA (stated/income, stated/asset loan). This type of loan requires the least amount of paperwork and relies heavily on your initial credit check. Because of the higher risk to lenders, the SISA loan has a higher interest rate than a SIVA loan. The more variable factors involved in a loan the higher the interest rate you will be paying.

Stated income loans are sometimes known as a "liar's loan." This is because there are some people who tend to overstate their income in an attempt to dog the system and get a larger loan than normally warranted. Because of this reason it is consider a riskier loan for lenders to give.

If you are looking to get a stated income loan, you should start by searching the internet. The web is a great place to compare and contrast the different loans that are available to borrowers. The more you search for a great loan the better your chance of getting a good interest rate.