If you remember the Real Estate market from the early 2000’s there’s no denying that stated income mortgage loans were big business back then and it seemed like everyone was able to qualify for this type of mortgage loan but following the collapse of the Real Estate market in 2007 stated income loans seemed like they were becoming a thing of the past.
Stated Income Loans Are Back
Fast forward to 2015 and stated income mortgage loans are back, especially in Southern California, where many mortgage lenders are cautiously offering stated income loans to home buyers.
We recently sold a home to a buyer here in Southern California for $1.1 million and, the buyer was able to qualify for a stated income loan but he had to meet the following criteria:
- 25% down payment.
- 700 FICO score (or higher)
There’s no denying that stated income loans are not for everyone but, if you are self-employed and have had difficulties qualifying for a mortgage loan in the past then a stated income loan may be a better solution for you compared to applying for a conventional, FHA or HUD mortgage loan.
About Stated Income Loans
One important thing to keep in mind is that with a stated income loan the mortgage interest rate that you can expect to pay may be about one half to three-quarters higher than what you would pay with a conventional mortgage loan so it’s important to consult with a mortgage lender first and review your finances before choosing a stated income loan.
You should still also be prepared to provide copies of your tax returns, bank statements and other financial documentation to a lender because the qualification requirements for a stated income loan requirements will vary with each lender.
Contact Fred Sed Realty
To learn more about stated income mortgage loans contact Fred Sed Realty today by clicking here or calling us at (800) 322-4643.