Are you one of many self-employed and hard-working people looking for a mortgage loan to finally fulfill your dreams? Are hard money & private money lenders simply not adequate enough to answer all your requirements?
Do not worry, because in 2020 all you need to know is that stated income loans provide the fastest way to acquire loans based on only 600 points credit score and 10% down payment so you can pre-qualify for your Stated Income Loan in a matter of minutes!
If you’ve ever found yourself in a situation when applying for a loan seemed like the only way to solve money problems, you clearly understand that there are so numerous verification steps that you need to go over.
It’s a process that is not only nerve and time consuming, but it also puts you and your business in an insecure position, something that is unacceptable for so many of you who are planning the future of safe income.
What’s so Great About Stated Income Loans in 2020?
This type of loan has gone under major reform nationwide after the 2008 house market bubble. With stated income loans in 2020, you simply declare your income on the application, and the borrower will evaluate it based on your credit score, profession, bank reports, and other assets.
Another great thing about stated income loans is that they offer a wide variety of loan plans for self-employed clients such as Bank Statement, One Month Bank Statement Program, Foreign Citizen Program, Investor, Asses Qualification, Agency Plus and many more.
For that reason, many prominent lenders offer convenient loan financing options that you may not find in your regular bank or credit union. With a stated income loan, you do not need to verify your income using W-2 forms or payment receipts.
If you have never applied for a stated income loan, here are some things you should know before you request.
You Still Need to Prove Your Income
It’s obvious that you cannot simply declare that your income is a certain amount without supporting it with some kind of evidence. You do not need to present proof of payment or W-2 forms, but You do need to verify your return by other means.
Typically, that means using bank statements. The number of statements of months you must provide varies from one lender to another. But usually, it is between 12 and 24 months of bank statements.
The Down Payment for a Stated Income Loan May Be Higher
It is common for lenders to demand a higher down payment for stated income loans than for loans that are verified through traditional paperwork. This could be as high as 25%.
Therefore, before applying, you may want to save for your down payment.
This will also give you the opportunity to save some reserve cash. A large number of lenders seek 6-12 months in cash reserves.
You Are Expected to Verify Your Employment (Or Self-Employment)
If you are an employee of a company, this is quite simple. What happens if you work for yourself? This does not eliminate the need for verification, but obviously, you cannot simply verify yourself.
What you can do is provide a letter from your CPA or another qualified third party.
Applying for a Stated Income Loan Will Reduce Paperwork and Time Spent
While many people apply for stated income loans because they simply cannot provide W-2 forms or payment receipts, this alternative loan application process also offers other benefits. On the one hand, less paperwork means fewer problems. On the other, it means less time consumed on meaningless things and procedures that do not even guarantee a safe result.
A stated income loan can reduce stress and help speed up the entire application process. This can be extremely useful in a fix and flip situations or other reasons to speed up the process.
Finally, one more advantage of stated income loans is that they allow you to exercise greater discretion over your own finances. When you make the request through the traditional loan approval process, if your application is accepted or not, it ultimately comes down to whether the lender believes that you qualify based on their formulas and models.
Applying for a loan can be a very impeding process. Trying to acquire that so needed money through the traditional process only to be rejected because you cannot provide a W-2 or prove that you can pay a loan through formulas that do not fully respond to your financial situation.
Stated income loans in 2020 can be a great opportunity to evade all that farse and get out of the problem very quickly if you find the lender with competitive interest rates and optimal down payments.
Whatever your financial situation is at the moment, there is a stated income loan that adapts perfectly to your needs.