Stated Income Loans
Some of the advantages of Stated Income Loans
Other things to consider when getting a Stated Income Loan
Stated Income Loans and how they differ from standard loans
Are you tired of having to dig up your W-2s and tax returns? If yes, then this loan is for you! Stated income loans are a great way to take away the hassle of verifying income with a Las Vegas mortgage broker. With this in mind, you do not have to show W-2s, pay stubs, or tax returns. You will state your income on your application and we will take your word for it. Due to the fact that there is no income verification, these loans typically go faster than government loans. There are no verifying deposits or tracking any sort of income that goes into your bank accounts. Talk about an easy loan! When doing a government loan, every deposit that is over 50% of your income needs to be verified. If not from a verified source or if it is a cash deposit, then it will not be taken into account. Having a business, each deposit would be very difficult to document. This is why these loans are recommended when you are self-employed and financially stable. Although you do not have to show your annual income, you will have to show 12 months of bank statements. Of course, when you own a business income can get very tricky to document to your mortgage broker. You have many deposits from different sources in your business accounts, which is the beauty of these loans. Furthermore, you don’t have to track down every deposit made into your account. However, your bank statements will determine if you have the money to afford the beautiful Las Vegas home you always dreamed of! In addition, the more money you put down the better the rate!
Examples and requirements for a Stated Income Loan
Every homebuyer needs a unique approach. Our team of experts will look into your situation and figure out the best loan for you:
For example, if the max LTV (Loan-to-value) is 75%, this means you will need to put a down payment of 25% of your purchase price. If your Las Vegas home is being purchased for $300,000, you will need to bring in $75,000. This figure does not include closing costs and appraisal. The great thing is, you can purchase a home up to $5,000,000!
With that said, your debt-to-income ratio will play a factor in determining your eligibility. For example, if you make $15,000 per month and you have $3,000 in expenses, your house payment (including principal, interest, taxes, and insurance) can not exceed $3,450. This example is if the debt-to-income ratio is 43%. Furthermore, your rate will be higher than government loans, such as Conventional and/or FHA.
These types of loans typically have higher requirements than other loans, such as Conventional, FHA or USDA. A lender will see this loan as a higher risk so, they require more. You will need a high credit score, reserves and a bigger down payment. The better credit scores you have, the better the rate you will have. Most lenders would like to see a credit score above 700 to be approved. Another requirement, a large amount in your accounts. Lenders would like to see financial stability before lending for an investment property. Bank statements will be a requirement to be approved. As for your income, it will depend on the price of the home you are trying to buy.
Due to the constant changes of rates and programs, these are subject to change. Contact your Las Vegas mortgage broker today.
Need a cash-out refinance? Stated Income Loans can provide that for you
Looking to get some cash out on your primary or even your investment property? Look no more! With this type of loan, you don’t have to show any bank statements, W-2s, tax returns or even paystubs. The amount you need is entirely up to you! Keep in mind, it will be based on your appraisal. A great benefit of a cash-out refinance would be to take advantage of the better rates. If you had a rate of 5% and rates are better when your loan is locked in, then you will pay less in interest. You can use the cash-out refinance to pay off debts, repair your home or pay for college. Another great benefit of doing a refinance is the interest is tax deductible as well as closing costs. There are other factors when considering a cash-out refinance, as well. You will be increasing your loan amount which will increase your mortgage payment. With this increase, you will be extending your term.
For example, if your maximum LTV (Loan-to-Value) is 70% and your home appraised at $400,000 then the max you can take out would be $280,000. However, if you have any existing mortgages then you would subtract that from the mortgage still owed. If you owe $100,000 on your home in a mortgage, then you would receive $180,000. You will be paying off your existing mortgage. If you have no mortgage on your current home then you can take out the full 70%, which would be $280,000.
These numbers are examples and are provided for you to understand the benefits of a stated-income loan and a state-income cash-out refinance
Contact our experienced team today if a stated-income loan is for you! Not only will we help you, we will be with you every step of the way.