Even if you are in the market to purchase a home, a stated income loan is probably not a term you are familiar with as they are no longer available to homeowners, but you can apply for one as an investor. A stated income loan is a type of loan from a lender that does not require the borrower to verify their income. The reason they were called stated income loans is that the lender used the income that was stated on the application.

They were very popular in the 2000’s and were used for consumers who could not necessarily verify their income because they didn’t have a standard form of employment, and are very popular with investors who provide proof of income and the ability to make payments.

Is It Right For You?

If you are an investor in the Bradenton or surrounding areas, we at JZ Mortgage Services, Inc., we would be more than happy to discuss how we can get you set up with a stated income loan.  As an investor, this is a great option, since you are only required to prove that you have the ability to repay the loan. Since stated income loans are funded privately, the requirements for approval can be altered to work with the individual situation and finances.

Traditional mortgages are not right for everyone, especially for those that are self-employed and are looking to invest in a property that can easily produce profit. As someone with fluctuating income, you may not have the ability to show proof of income as a traditional loan might require with pay stubs and tax information, although you can fund the payments. If this sounds like a situation that is similar to the one you’re in, a stated income loan might just be the best option for you.

A bank statement loan is different in the verification process than a conventional loan, but that does not mean that the lender is not doing a thorough investigation before approving the loan. Each lender has their own standards and requirements, but they all are based in determining the borrower’s income and ability to repay the loan, as well as the borrower’s debt to income ratio. These loans typically require a larger down payment and will sometimes have a higher interest rate as well since there is a bit more of a risk when it comes to these types of loans.

Contact Us Today! 

Stated income loans are a thing of the past but a similar alternative is available and may be a good option for you especially if you are self-employed or an investor.  We want to make sure you have all the tools necessary to make the right choices. Please reach out to JZ Mortgage Services, Inc. to discuss your options today!