Top Stated Income Mortgage Lenders of 2019
Because there were many bad loans in the “stated income” category years ago, many lenders stopped offering them. A stated income loan is one where the borrowers literally “state” what income they will have available to repay the loan without offering documentation. Many people over-stated their income and when they defaulted on the loans, there was turmoil in the lending industry. Also known as a “no-income-verification required” loan, banks are more cautious about offering these loans, but they are available.
Borrowers should be aware these loans are intended for people who may not have the ability to show documentation for all their income, but when they sign a loan document stating their income, they must be truthful. Not being truthful on loan documents is a serious crime.
Today’s stated income programs differ from the risky loan products that existed before the subprime mortgage crisis. New regulations strictly dictate what features a loan may have. Loans that meet these guidelines are known as “qualified mortgages”. Any loan that does not meet the necessary requirements is a non-qualified mortgage (commonly referred to as non-QM loans).
How to Qualify for a Stated Income Loan
The stated income mortgages that exist in 2019 are different. In the early 2000’s, a borrower could often just state their income with no verification of any kind. The stated income programs of today require that you actually prove your income, but you may be able to do so without the use of tax returns. Instead, the alternative way of verifying your income is accomplished using either 12 or 24 months worth of bank statements .
These new stated income mortgage loans are often referred to as “ bank statement loans “, “alt doc loans”, or “alternative income verification loans”. Technically, you are not just merely stating your income, but rather using an alternative means to verify your income (both personal and business bank statements may be used).
Regardless of the lender, you should expect to be required to have at least a 620 credit score, and a larger than normal down payment (most often 10% or higher).
Best Stated Income Lenders of 2019
Below is a list of the best stated income mortgage lenders of 2018. Each of these lenders currently offer options for alternative income verification (using bank statements in replace of tax returns).
You may learn about each lender, and their stated income programs by visiting their website, or by speaking with us. Would you like some help determining what is the best stated income lender for your particular situation? We would be glad to help connect you with a lender. Simply contact us , and we will do all that we can to assist you.
6 – Green Box Loans
7 – Oaktree Funding
The above 7 mortgage lenders are the companies that we deemed to offer the best stated income / alt doc loans. There are other lenders that have recently introduced new loan products to accommodate borrowers that need to use alternative income documentation. We would be glad to help you compare what options may exist for you. If you would like a free consultation, and learn what mortgages you may qualify for, get in touch with us today !
Frequently Asked Questions:
Who are these stated income programs intended for?
These sort of loans are most useful for self-employed borrowers, contractors, and other types of small business owners who are often paid through many different sources. Additionally, investors are attracted to these types of loans.
Are these stated income loans available to purchase an investment property?
Yes, you may purchase an investment property or second home using one of these programs. The minimum credit score requirement is usually 680 or higher to purchase an investment property without using tax returns.
How many months of reserves is typically required?
Most non-prime lenders that offer these stated income loans will require that you have at least 12 months of mortgage payments in reserves. However, a few lenders do not have any reserve requirements if you have good credit and/or a large down payment.
Are there stated income loans available for jumbo loans and super jumbo loans?
Yes, there are stated income jumbo loans, as well as stated income super jumbo loans. These programs are available to purchase a home, or to refinance an existing mortgage. The maximum loan amount available is $5,000,000.
What is the typical down payment required?
Most mortgage lenders will require that you place at least 10-20% down. However, some lenders have been known to accept a lower down payment if you have excellent credit, strong reserves, and other aspects of your loan application that are strong.
What is the minimum credit score being accepted?
For most lenders, you should expect to need at least a 620 credit score, however there are exceptions where someone with a lower credit score is approved, due to having strong compensating factors, such as a higher down payment.
What states are stated income / alternative documentation mortgages available?
Our network of non-prime lenders issues stated income mortgages in the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.