Mortgage applicants who can't provide tax returns or pay stubs to show their income are getting stated income loans again as companies such as SunCoast Mtg and Westport Mortgage chase customers they can no longer afford to ignore.
Lenders say these aren't the same products as the so-called "liar loans" that were pervasive before the housing bust. Instead, the loans are going to borrowers such as small businessowners or investors buying properties they intend to rent who can demonstrate an ability to repay, verifiable through bank or brokerage statements. Lenders said they look for enough assets to pay six to 12 months of payments.
"This is not a return to the wild and wooly days of, if you fogged the mirror, you can have a loan," "They have a smarter edge to them now."
Stated Income Residential Loans
Stated Income Loans have minimized income documentation and therefore have other methods of reducing the risk of the mortgage. Our residential stated loan program are for self-employed and wage earners. Borrowers might use a stated earnings program wherein the earnings specified on the application will not be verified by the lender. For self employed customers evidence of self-employment as well as confirmation of all property accounts is required. Evidence for self employment is normally a Certified Public Accountant letter. Whether you are self employed or are a wage earner, excellent credit (660 credit score or higher) is required to qualify for a stated income loan. We have other programs for borrower with lower credit scores to 620 but to get the best rates and Loan to Value, a credit score of 720 or higher is preferred.
Some stated loan programs do not require minimum asset reserves but for the best mortgage rates, verifiable liquid assets would be preferred and encouraged
Call Arthur @ Suncoast Mtg 941.536.6740 or Check Out EZ Qualifyin www.SunCoastMtg.com
SunCoast Mtg is one of few lenders in the Florida market offering Stated Income loans. Currently this product is being offered in about 40 states across the nation.There is one catch, it must be a non-owner occupied property loan and you typically need 30% down. This product is only offered ito borrowers whose credit score middle is above 650 due to the Qualified Mortgage rules.
This is the perfect loan for self employed or W2 borowers who write off much of their income but have assets or deposits consistent with the income they are claiming. Losses on tax returns for start up costs or special depreciation that trouble many self employed borrowers are typically not a problem with this product. And unlike hard money lenders, the interest rates are only about a half point higher than that of fully documented loans. Loans are availble from 100k-1 million for SFR, Condo & 2-4 Units with 100k- 5MM for units of 5+ for multi-family and mixed use. Also availble is Commercial loans from 750k- 5mm
If you’d like more information, please contact Arthur Chandler 941.536.6748