A stated income home loan is a mortgage where the lender does not verify the borrower's income by looking at their pay stubs, W-2 Wage Earners (employee income) forms, income tax returns, or other records. Instead, borrowers are simply asked to state their income, and taken at their word. These loans are nominally intended for self-employed borrowers, or other borrowers who might have difficulty documenting their income. Stated income loans have been extended to customers with a wide range of credit histories, including subprime borrowers. Stated income loans fill a gap of situations which normal loan standards would not approve. For example, a standard rule is that a customer's mortgage and other loan payments should take up no more than 43% of the person's income. This would seem prudent for a person just owning their main home. However, a real estate investor may have multiple properties and for each may receive only a small amount more than their loan payments on each house, but end up with $200,000 in disposable income. Nevertheless, a non-stated income loan would decline this person since their debt to income ratio would not be in line. The same issue can arise with self-employed borrowers, where the bank with a fully documented loan would include the borrower's business debt in their debt to income calculation. Stated income loans also help borrowers where fully documented loans normally would not consider the source of income as being reliable and stable, such as investors who consistently earn capital gains. Fully documented loans also do not consider potential future income increases. Another type of loan that uses the same principles is the no income disclosure loan.

Stated Income Home Loans

Portfolio 5/1 ARM
Portfolio 5/1 ARM
Rate and Term and Cash-out Refinance

** Max cash out amount $400k
Portfolio 5/1 ARM
Fully amortized payment.
Loan Amounts
Minimum $417,001 / Maximum $2,000,000  (call for details)
Borrower Eligibility
U.S. Citizens / Permanent Residents
Non-Occupant co-borrower

Not allowed
Multiple Property Ownership

Eligible Properties
Max 5 financed properties
SFR & PUD - 1 unit only max 10 acres

Ineligible Properties
Condos, Condotels, Hobby Farms, Modular Home, Log Homes, Coops, Multi-Family & Manufactured Homes

Listed Properties
Properties must be withdrawn from MLS 3 months prior to initial loan application date.

Continuation of Obligation

The borrower must be the existing lien holder for refinance transaction.

Appraisal Value

Maximum 20% appreciation if subject property was purchased within last 6 months.

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