Stated Income Loans

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Getting a loan can often be a very time consuming process. From finding the right lender, to submitting all of the paperwork, many people find it difficult to go through the lending process. Stated income home equity loans offer an easy solution for those people who are looking to get a loan without all of the traditional paperwork. The best part about these stated income loans is that you simple have state your income when it comes to the loan application process. These loans are popular among people who find it difficult to gather all of the paperwork necessary for the loan process.

Although you can state your income, you do have to prove your employment. Lenders aren't foolish enough to allow people to state their income and their employment without doing a check to see if the information is accurate. These stated income home equity loans are taken out using the equity in your home as collateral for the loan. Because these loans are secured loans, you the interest rates will be lower than traditionally unsecured loans. The stated income loan will have a slightly higher rate than a fully documented loan.

There are a couple different types of stated income home loans. The first kind of loan is a SIVA (stated/income, verified/assets) loan. These loans allow you to state your income, but verify all of your assets. You would need to produce documents to show your assets. When banks give you home equity stated loans they verify the equity that is remaining in your home. Once they have an assessed value for the equity, they can then give you an amount.

The other type of loan is a SISA (stated/income, stated/asset) loan. These loans allow the lenders to state both their income and their assets. These loans offer higher interest rates because there is a greater risk the lenders bear when they offer these loans. SISA loans are becoming less common because of the liability that lenders are faced with.

Most lenders will run a credit check to make sure that you have a good credit history. Lenders won't allow someone with a terrible credit history to get a stating income home equity because it is likely that they will either overstate their income or flat out lie. Lenders also do industry average checks for the salary of the position that you state. This means if you overstate your income they will reject your loan application.