Are You Needing A Stated Income Loan?

This Loan No Longer Exists 

A stated income loan is a home loan where you just say how much you make. You do not have to prove what you stated as your income with pay stubs, tax returns, or W-2’s. 

Don’t get too excited just yet. The income you state must make sense and be realistic in relation to the other information you have provided. In other words if you are stating that you make $50,000 a year in what is commonly know as a minimum wage job it’s not going to work.

If you are self employed or have other income that you can’t or don’t want to prove, this is a great way to buy or refinance a home. This is also useful for a couple where one the borrowers has poor credit. The stated income loan can include both partners income even though only one of them is applying for the loan. Again it needs to be realistic.

If you are purchasing a home and need 100% financing you must have a credit score of at least 620. If you have a down payment or equity in your home you can have lower credit scores.

The interest rates on a stated income loan will be higher because it is more of a risk to the lender since you are not actually proving your income. But this is an easy home loan.