Stated income loans have gotten a bad rep since the crash but we shouldn’t shy away from them, they can be a very useful tool for the right borrower! Since the crash, there have been a lot more regulations put in place to protect the consumer but it also means it makes it harder for some borrowers to qualify. So what does it take to get a state income loan these days?
State income basically means the borrower does not have to show their tax returns in order to qualify for a loan, instead they are judged on a few different variables.
CREDIT- this is obvious but lenders always want to see that a borrower has good credit. Minimum credit scores float around 620.
CASH RESERVES – a lot of borrowers who use stated income have plenty of money in their bank account but cannot qualify for a conventional loan simply because their tax returns do not show they actually made that money because of write offs or other tax benefits of being self-employed. A stated income loan is just that! The borrower states they have the money to pay their monthly payments for at least 6 to 12 months. This shows the lender the borrower has “the ability to repay” the loan, which is what the current regulations focus on the most.
LARGER DOWN PAYMENTS – When the borrower has more invested in the property there is less of a chance they will default. Generally, on a primary resident with a loan amount of $1 million or less, the down payment will need to be at least 20%. If it is an investment property it will have to be 25%. With higher loan amounts it ranges from lender to lender but floats around 35%.
If you have any interest in a stated income loans or have any questions about our other loan products, feel free to reach out anytime!
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Recap of our Loan Products:
1). Stated Income Loans (Great for business owners and self-employed) 20% down / 620+ credit score / 2 years business license / 12-24 months bank statements
2). Foreign Nationals Loans (no social security or residency required) 35% down / Foreign passport / Document income outside US
3). Hard Money Loans (28-35% down / minimal documentation) Fund in 7-10 days. 480+ credit score
4). Raw Land and Construction (Bridge Loans) including Spec Home! 75% loan to cost (cost of land and construction budget)
5). 3% down Conventional (Lender paid PMI)
6). Residential Income/Investment Property (including Mixed Use) Purchase and Refinance Loans 20-35% down depending on property, credit etc.
7). Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
8). Flipper Loans (Flip a property with one of our many options) 30% down we finance acquisition and rehab funds / 1-2 year terms
9). 10.1% down Jumbo’s with NO MI up to $2.5mm
10). Manufactured Housing / Mobile Homes (20% down / 620+ credit score) must be tied to real property/Must be at least double wide/Must be built after June 15th 1996 /
11). Acreage Properties
12). Commercial Loans up to $100mm / Purchase and Refinance Loans 25-35% down depending on property, credit etc.
We also offer:
1). 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans (under $424k) 30 year fixed
2). High Balance Conforming aka Super Conforming (from $424k-$636k) 30 year fixed
3). Jumbo’s to $10 Million / Super low rates! / 10% down Jumbo to $2.5mm
4). FHA, VA, USDA
5). ARM’s
6). Reverse mortgages up to $10 Million Value
7). Refinance including Cash Out
I am able to take a Loan Application on a moment’s notice & will be happy to provide Pre approval letters.
Please do not hesitate to call on me on each and every scenario and we will ID best programs.
Camille Patterson
Loan Officer
CaBRE# 02035349
NMLS# 1517035
Valor Lending Group
“Pride in Lending”
Petco Park
Direct: (858) 732-2320
Office: (619) 344-2640
Fax: (619) 872-2400
cpatterson@valorlending.com
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