Stated Income Loans

Stated income loans are great for those that are self employed because they are used when you are unable to provide tax returns or pay stubs to prove their income. They do usually also mean that you will need a good credit score and a higher down payment.

The Process

The first step of the process is the same as with any other type of mortgage which is applying for the loan. You may want to shop around and discuss your options with different lenders to make sure you are working with a company that best suits your personal situation. Once you’ve found a lender you want to work with, you’ll want to get all your financial information together to start the process. You’ll have to provide documentation of your income, debts and credit history in order to get approved.

It’s not as easy as a process to get a stated income loan as a conventional loan, but that doesn’t mean it’s not possible. You will of course still need to provide documentation of your financial situation, but you may not need the detailed paperwork that was necessary years ago.

Once you have all your financial information submitted, the underwriting process begins and you will find out if you are approved, declined, or need to make adjustments. The actual underwriter will begin to fully begin getting your mortgage completed if you are approved which can take some time. If you are self-employed, the underwriting process can be complicated when it comes to getting you qualified because lenders only consider taxable income.

The main thing a lender wants to confirm is that you are financially stable enough to pay back the loan as well as that the down payment is coming from a reliable source. You may be asked to provide additional information regarding the source of your down payment in certain situations. You may have to provide other documentation, depending on the underwriter and what they deem is necessary to qualify you as a qualified candidate.

The Approval Process

The approval process will vary depending on the lender you are working with, so you will need to discuss specific requirements with the lender of your choosing once you’ve been approved by an underwriter. Depending on how you are making the money to fund the loan payments, you may need to provide specific details and documents but that is dependent on the loan.

Call Us Today!

If you are self-employed or don’t make your income in a traditional way, a stated income loan might be the right option for you. We would be more than happy to discuss your options and answer any questions you may have, so feel free to give us a call at KC Investor Funding today!

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