To qualify for a stated income mortgage loan, borrowers typically need to meet certain requirements, which may include:
- Good credit score: Lenders will typically require borrowers to have a good credit score, usually a minimum of 620 or higher.
- Significant assets: Lenders may require borrowers to have a significant amount of assets to use as collateral, such as a substantial savings account or investment portfolio.
- Large down payment: A larger down payment can help offset the risk for the lender and increase the chances of getting approved.
- Proof of income: Even though the loan is called “stated income” loan, some lenders may still require proof of income in form of bank statements, tax returns, etc.
- Property type: Stated income loans are typically only available for owner-occupied properties and not for investment properties.
It is important to note that stated income mortgage loans are not legal in many states and most of the big banks stopped offering them. Furthermore, the use of these types of loans were a significant factor in the 2008 financial crisis, and as a result of this, many banks have completely stopped offering them. It is best to consult with a mortgage professional to understand the current regulations and who are legally offering these types of loans, if any.