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Stated Income Loan

By Edited Sep 4, 2015 0 1

A stated income loan, also known as a no document mortgage, may be perfect for someone who cannot fully document their full income. To qualify for these loans you merely need to prove some stated income as well as a good credit score--because of the looser qualifications you will often have to pay a slightly higher interest rate. While it is very easy to comparison shop online to see which stated income mortgage loans are the best deal, this does not mean that the lenders will guarantee that that is the deal you will be offered.

Before you apply for a stated income loan you will need to make sure you have your paperwork together (credit card score and proof of employment). Companies will need to be provided with your social security number as they use this to check your credit score--you will need at least a 680--which is the primary determinant for whether not you will qualify.

A few lenders might offer loans to people who have lower scores (the lowest I have seen is 580) but 680 is the average; employment is a must as well but you can still apply if you are self-employed. The income you declare must be in line with current standards for your particular profession--an income that is too high will immediately raise red flags to the lenders.

While a small .25 of a percent may not seem like it will make much of a difference in the long run, it can and this is why it is very important that you compare what different mortgage lenders have to offer (what are their interest rates and what fees do they charge). You could save thousands of dollars by being vigilant.

Not only can you locate a variety of lenders online but you can also fill out forms to have them give you a quote and an estimate on what you can expect for a mortgage from them. You never have to leave the comfort of your own home to find a mortgage lender by searching online.

There are two ways to go about getting a mortgage once you find a lender: you can apply before you go house hunting and have a pre-approved stated income loan lined up you can apply for the loan after you have decided upon the house you wish to purchase. The odds are better if you have your loan pre-approved.

Also note that buying a home with poor credit will change the way you get a mortgage. You won't be able to qualify for a traditional loan and will have to see out a bad credit loan online through a sub prime lender.

In general, online mortgage applications are very easy--just input some basic information and the company will send you the final paperwork that you must review and sign. Once you have mailed the forms to the lender they will then consider you for a stated income loan.

See related mortage guides:



Sep 6, 2009 11:48pm
can you provide more info on what lenders are offering this stated income loan for self employed??
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