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Stated Income Loans Are Back
Stated income loans used to be popular a few years back, and there were plenty of stated income lenders that were available. These lenders had flexible guidelines and offered low stated income rates– but once the credit crisis hit, lenders started to pull their stated income programs. Stated income loan programs helped people with unique situations, which is why many, especially small business owners, started having issues getting loans once they were no longer being offered.
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Stated Income Loans are favored by many. Here are some types of borrowers that may consider getting a stated income loan:
People who are highly commissioned, who may have a low salary base but make most of their earnings through commission.
Self-employed individuals who own a small business
People who cannot prove documentation for at least 2 years of income at their current income levels.
Individuals who make plenty of money but do not want to disclose their income information.
In 2016, Guidelines Vary By Lender
Since stated income loans are being offered by lenders again, borrowers are able to receive loans and get help with refinancing their current home or buy a new one with a mortgage loan. Different lenders, typically means different guidelines. A lender will establish a stated income product and then develop guidelines around it– ultimately, producing varied guidelines from lender to lender. These various stated income programs will usually have certain nicknames like:
And many more
Stated Income Lenders
Not all lenders offer stated income loan programs. The majority of loan officers know that having a stated income lender can immensely help a small business owner get into a home. Stated income lenders are typically smaller lenders, who come up with innovative solutions, stated income products, and flexible guidelines. These assets help attract good business, which creates a beneficial result for all parties involved.
Stated income loan programs will all be different based on the guidelines that are set by each, individual lender. For example: Lender A’s NINA loan will probably have different guidelines set than Lender B’s NINA loan. This is why it is important to shop around when considering a stated income loan.
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Stated Income Interest Rates
Similar to guidelines, stated income interest rates will vary by lender, as well. You can anticipate for a stated income loan to have higher interest rates than a FHA loan, however, nothing that is out of the market. Stated income loans carry a premium and they will have to be competitive. Guesstimate a few percentage points higher than a FHA loan and you should be in the right ballpark for a stated income interest rate.