Stated Income Mortgage Loan
| Stated Income Mortgage Loans are the most commonly used and least expensive product in the reduced or no documentation suite of programs. A Stated Income Mortgage 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 Mortgage Loan is the least expensive reduced documentation product if it works for you. If not, a No Ratio or true No Doc mortgage but 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.
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Available Stated Income Mortgage Loan Terms
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Stated Income Mortgage Loans are available as:
15 or 30 year fixed rate require only 5% equity and the rate will not change, however rates are lower with more equity.
5 year ARM
Home Equity and Second Trust programs are available.
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Allowable Use and Property Types
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Stated Income Mortgage Loans 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 Mortgage 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.
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Underwriting Guidelines
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Some general guidelines for a Stated Income Mortgage 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.
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Stated Income programs allow you to purchase or refinance a single family, townhouse or condo. An investment property 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.
New! 100% Stated Income mortgage loans are now available for owner occupied, principal residences. Perfect credit is required but only 2 months of liquid reserves.
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 Mortgage. A LIBOR or MTA based product which gives you complete flexibility in managing your mortgage. |
