Stated Income Loans: Is it possible to get such loans now?
The sated income loan is a mortgage loan in which the lender will not ask for pay slips. Income tax return documents or any other income proving documents for verification to approve loan but only the lenders ask to state their actual income to get approval of this loan. This stated income loan is mainly suitable and helpful for those who are self employed, retired person and unemployed borrowers. The self employed people can’t apply the normal mortgage loan or other loans for unstable income due to economic crisis and proving income to the lenders. Sometimes it is called no credit check loan or no income verification loan (NIV) due to nominal requirement of documents without verification.
There are several criteria for qualify the stated income loan. First of all you have to check your credit score which must be above 760 and along with that you have to down pay the 30 percent or more of the total loan value. There you have to reserve personal liquid cash for 6 months’ monthly obligation to obtain this loan. The lenders are looking for minimum 2 years of self employment record within same field of work. You have to provide a letter of accountant as an evidence of 2 years of self employed. On completion of those documents they arrange the loan to you. Before closing you have to fill a Federal tax form 4506T as a requirement of the lender.
In this current financial crisis period many self employed persons are suffered to satisfy sudden requirement of cash from any loan account as because they are not able to apply any normal refinance or mortgage loan. So the sated income loan or no verification loan is a blessing of god for them.
