Stated Income Mortgages Can Help
Home ownership is a dream of many American couples and singles, but a large percentage of would-be buyers don’t believe they will be able to qualify for a loan. Many couples possess income or assets that just don’t show up in W-2s or tax returns, but are true sources of income and should be considered for loan qualification. The good news for borrowers in this situation is there are solutions. One option that might work for some is a Stated Income Mortgage. Like all loans, there are positive and negative aspects of this loan, so these should be carefully examined and considered.
Often times, small business owners don’t have the necessary documentation to prove to lenders because of a cashed based business such as a tavern or restaurant. Many lenders require copies of tax returns that show profits in order for a home mortgage or home refinance loan to be approved. In some situations, small business owners find it necessary to take from their home’s equity and invest in their business to keep above water. Lenders that offer stated income based loans often can look at bank deposits, allowing an average to be taken from in some instances, only the last twelve months, and base the loan amount upon an extrapolation of that average, allowing for businesses whose profits may ebb and flow over the course of the fiscal year to qualify for a higher amount.
Often times, couples have a spouse that might stay at home to watch the children and care for the household. This spouse might however work in spurts, for example seasonally, or per engagement, such as a performing artist, ski instructor, etc. Cash wages for this spouse can be qualified through submitted bank statements that show that in fact extra income is available to add to conventional income and increase borrower ability to qualify for a requested amount.
A stated income loan can help borrowers whose incomes are considered unconventional and unsupportable by many lenders qualify for the loan they need for their house or budding business. Unfortunately, this somewhat relaxed consideration of qualifications might allow some to borrow who are not going to be able to keep up with monthly payments slip through the cracks. In order to protect the greater risk taken by the lender, the interest rate might be steeper than with a conventional loan. Careful deliberation of all available options should occur before committing to any loan. Stated Income Loans are beneficial and just might be the way to make an unlikely dream of home ownership come true.
About the Author: Jeremi McMaster is Chief Executive Officer of FreeHomeRefi.com, leading provider of mortgage refinancing solutions. For information on refinancing online, go to
www.FreeHomeRefi.com.
Often times, small business owners don’t have the necessary documentation to prove to lenders because of a cashed based business such as a tavern or restaurant. Many lenders require copies of tax returns that show profits in order for a home mortgage or home refinance loan to be approved. In some situations, small business owners find it necessary to take from their home’s equity and invest in their business to keep above water. Lenders that offer stated income based loans often can look at bank deposits, allowing an average to be taken from in some instances, only the last twelve months, and base the loan amount upon an extrapolation of that average, allowing for businesses whose profits may ebb and flow over the course of the fiscal year to qualify for a higher amount.
Often times, couples have a spouse that might stay at home to watch the children and care for the household. This spouse might however work in spurts, for example seasonally, or per engagement, such as a performing artist, ski instructor, etc. Cash wages for this spouse can be qualified through submitted bank statements that show that in fact extra income is available to add to conventional income and increase borrower ability to qualify for a requested amount.
A stated income loan can help borrowers whose incomes are considered unconventional and unsupportable by many lenders qualify for the loan they need for their house or budding business. Unfortunately, this somewhat relaxed consideration of qualifications might allow some to borrow who are not going to be able to keep up with monthly payments slip through the cracks. In order to protect the greater risk taken by the lender, the interest rate might be steeper than with a conventional loan. Careful deliberation of all available options should occur before committing to any loan. Stated Income Loans are beneficial and just might be the way to make an unlikely dream of home ownership come true.
About the Author: Jeremi McMaster is Chief Executive Officer of FreeHomeRefi.com, leading provider of mortgage refinancing solutions. For information on refinancing online, go to
www.FreeHomeRefi.com.
Labels: mortgage refinancing, refinancing online
posted by Free Home Refi at
11:46 PM
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