Getting a stated income mortgage loan can be more difficult than getting a traditional mortgage loan, as lenders typically have stricter requirements and may require more documentation. However, there are a few things you can do to increase your chances of getting approved:
- Work with a mortgage professional: A mortgage professional can help you understand the requirements for stated income loans, and can help you identify lenders that are willing to work with you.
- Meet the lender’s requirements: Lenders will typically require borrowers to have a good credit score, a significant amount of assets, and a large down payment.
- Provide alternative documentation: Some lenders may require alternative documentation of income, such as bank statements or tax returns, even though the loan is called “stated income” loan.
- Be prepared to pay a higher interest rate: Stated income loans are considered high-risk and come with a higher interest rate.
- Be aware of the legal restrictions: Stated income loans are not legal in many states, and the use of these types of loans were a significant factor in the 2008 financial crisis, so it’s important to understand the current regulations and who are legally offering these types of loans, if any.
It is important to note that stated income mortgage loans are becoming increasingly difficult to obtain, and most of the big banks stopped offering them. It’s essential to consult with a mortgage professional and understand the risks and benefits before applying for a stated income mortgage loan.