Stated income mortgage loans are the most commonly used and least expensive product in the “reduced” or “no documentation” suite of mortgage home loans. Stated income mortgage loans are often also referred to as “no income mortgage home loans” or no income verification home mortgage loans.
Stated income mortgage loans were originally created to cater to the self-employed. As they have no way to verify their work, stated income mortgage loans were needed to allow them to use their stated income as a factor when applying for a loan. If you are self-employed, this may be your best option for receiving a loan.
In addition, those with verifiable employment can use these loans as well. This is especially helpful if your verifiable income is a little low for other real estate mortgage loans. If you have outside assets or employment, you can use stated income mortgage loans to help you purchase your new home.
There are some drawbacks to these loans, though. Many companies will require you to pay a premium based on your credit scores, assets, and other factors. However, if you choose hybrid adjustable rate mortgage loans you may actually get a better deal than those who have verifiable employment.
Whatever your situation, whether you are self-employed or lacking a bit on the verifiable income scale, check with your local lender or sign up for a free quote online to see if a stated income mortgage will work for you!
