is a Stated Income Loan?
A. With a Stated Income Loan, you do exactly what it says. You, the borrower,
state the income and the financial institution does not verify the dollar amount. In most
circumstances, your position and title are verified only.
Q. Are there any conditions with a Stated Income Loan?
A. The one condition of a Stated Income Loan is that your income is reasonable
with your title. For example, a waitress making $9,000 a month in tips usually will not
make it through the underwriting process.
Q. Who would use a Stated Income Loan?
A. Stated income is a very popular form of loan qualifying. As you're probably aware, most
successful business owners write off a lot of their expenses at the end of the year on
their taxes, causing very little net income to be used for qualifying for a loan. You also
see this with borrowers that make tips, bonuses and commission as their sole form of
income. These people would want to use a Stated Income Loan.
Q. Is there a minimum FICO required?
A. Stated Income Loans are available with FICO scores as low as 580. If your FICO
score is above 730, there is no penalty in rate for doing a Stated Income Loan.
Q. When can I use a Stated Income Loan?
A. Stated Income Loans are available for purchases, refinancing your current home and home
equity lines of credit.
Is a Stated Income Loan the best option for you?
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