Can You Still Get A Stated Income Mortgage?

Can you still get a stated income mortgage? The answer is a resounding “yes.” These atypical mortgages dried up and virtually disappeared from the lending scene in recent years, due to unprecedented mortgage default rates. The US economy is now showing definite signs of an impending comeback. So, too, are stated income home loans.

These distinctive financial products provide the perfect solution for prospective homeowners with unique financial circumstances. Specifically, stated income mortgages are ideal for borrowers whose income is derived from self employment, commissions, or investments. Mortgage applicants who place a high premium on financial privacy also find these loans attractive.

As the name implies, “stated income” mortgages require little or no income verification for approval. The lender relies solely upon the figure supplied on the loan application for its decision-making. Traditional income documentation such as tax returns, paycheck stubs, and bank records is not required. Income source, however, is usually verified.

Stated income home loans are ideal for the self-employed who may underreport their incomes or those who desire economic discretion in conducting their affairs. Wealthy celebrities, sports figures, and highly paid professionals commonly seek stated income mortgages for this reason.

The benefits of stated income mortgages carry corresponding costs. Because lenders rely upon applicants’ unsubstantiated representations of income, the risks associated with these loans is somewhat higher. Consequently, stated income mortgage rates are higher than those of traditional home loans. Lenders seek higher returns to offset potentially higher default rates and associated losses.

Other initial costs such as discount points and down payment may also be higher for stated income home loans. Carefully review all proposed terms and do a thorough comparison of multiple loan offers to identify your best overall option.

For many borrowers with acceptable credit who are unable to provide conventional income documentation, these mortgages may be the only means whereby they can achieve homeownership. In such cases, the extra fees associated with these loans are miniscule when compared to the advantages they yield.

How can you still get a stated income mortgage? A simple search engine query will reveal an abundance of lenders ready to serve your needs. Consult your local Yellow Pages or do similar online searches for mortgage brokers who may know of lenders who offer these loans. Seek referrals from family, friends, and social or business associates. Local real estate agents are also a valuable resource for finding stated income mortgage lenders.