Stated Income Home Loans [mortgagedealstips.blogspot.com]
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mortgagedealstips.blogspot.com Stated Income Mortgage Loans
If you are looking to get a loan without the hassle of providing all of the paperwork necessary, then you can apply for a stated income home loan. These loans permit borrowers to state their income instead of providing the appropriate proof of income.
These loans are intended for people who have difficult tax schedules or self-employed. However, it is a common practice for borrowers to "overstate" their income. This is why that these type of loans are sometimes called "liar's loans."
The first type is stated income/verified asset (SIVA) loan. This type of loan allows you to state your income, but requires you to verify your assets through a bank statement or other documentation. The second type of loan is a stated income/stated asset (SISA) loan. In this type of loan you can state both your income and your assets.
Before being approved for a stated income loan your lender will verify your employment with your employer.
Another common practice among lenders is to give you a loan based off of the average income for your particular job title. This means that if you over state your income they will not approve your loan. Lenders will also run credit checks on potential borrowers to ensure that they haven't defaulted on loans in the past.The downside to these types of loans is the interest rates are usually higher than traditional loans. This is because these loans are higher risk loans than traditional loans. A good thing to do before getting a stated income loan is to look online for different lenders. Doing your research online can ensure that you get the best rates available.
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