Ask your lenders about stated income mortgage loans, no income second mortgages and home loans that require less documentation for self-employed borrowers. Rules and lending requirements have changed dramatically for stated income 2nd mortgages and no documentation refinancing over the last few years.
There are more self-employed and independent contracting borrowers than ever before. Therefore, the need for stated income loans and second mortgages with reduced income documentation is also greater than ever.
Are there still Stated Income Mortgage Loans?
As of August 2024, stated income mortgage loans that don’t verify a borrower’s ability to repay are no longer available with traditional mortgage lenders that offer conventional loans. However, there are Non QM lenders continue to offer similar products under different names, such as asset depletion loans, bank statement loans, and investor loans. These alternative documentation loans still require lenders to verify a borrower’s income, debt-to-income (DTI) ratio, and credit history to ensure they can afford the loan.
Stated income lenders may also require some form of income documentation, such as bank statements, tax returns, or a letter from a CPA. These stated income mortgages and no doc loans often come with higher interest rates and larger down payment requirements to offset the added risk to the mortgage lender. Ask about stated income mortgages and take advantage of home loans with no tax returns required.
BD Nationwide works to find you stated income mortgage lenders that offer no doc home refinance loans, bank statement loans and streamlined credit lines with no ratios required for qualified borrowers. Since the “stated loans” require less paperwork, the process is streamlined and typically they will close a week earlier than full-documentation programs will.
Find Lenders for Limited Doc Home Loans and Stated Income Mortgages
Consider taking out a quick and easy no income verified 2nd mortgage or refinance loan online and take advantage of a streamlined loan process for faster loan closings.
Getting a no income mortgage is easier than you think. Consider the pros and cons of the second mortgage vs refinance when comparing stated income loans online.
Compare reduced documentation options and stated income loan options for borrowers who meet the underwriter’s qualification requirements.
Get a free quote today from our stated income mortgage lenders with no obligation.
No Documentation Mortgage Highlights
•Stated Income Home Loan Options
•No Income Home Loans (see lender)
•Limited Doc 2nd Mortgages
•Interest Only Mortgage Options
•No Mortgage Insurance Required!
•Credit Line with Prime Rates for Life
•2nd Mortgage with No Documentation
•No Income Verified Loans (see lender)
No income mortgage loans are difficult to qualify for these days. You need excellent credit and typically a lot of equity in order for a lender to approve you for a stated income mortgage. *See lender for eligibility for programs and program availability because many no income loans have been placed on hold.
Are you concerned about the application process because you are self-employed or on some type of commission, or tip position employment? Stated income mortgages with no income verification could be the perfect loan for you!
There are requirements that must be met so talking with right mortgage companies would be the first step. Before applying it makes sense to choose between a home equity loan vs HELOC line of credit.
What type of credit scores do I need for a “Stated Income” second mortgage?
“Stated Income” Loans require less income documentation than traditional mortgages, so credit scores become the major compensating factor when no income verification is required. Typically more equity is required for limited or stated income 2nd mortgages.
- Good credit scores
- Significant amount in savings
- Bank statements to verify financial stability
How long do I need to be self-employed to qualify for a no income verification loan?
Most lenders have set underwriting guidelines at 2 years as a minimum for self-employed borrowers in the same line of work. Check with our no income mortgage lenders for the latest requirements.
At BD Nationwide, we understand that people who own a business have a variety of reasons that verified income would prove difficult. A Stated Income Mortgage doesn’t require the same level of verification. Interest rates are on the way up, so don’t wait too long to apply for a low rate 2nd mortgage, because of income verification concerns. Our team of seasoned professionals is ready to assist you in securing the appropriate loan that necessitates minimal documentation. Apply for a Stated Income HELOC now!
Why Self-Employed Borrowers Like Stated Income Loans
Self-employed individuals often depend on stated income loans due to the difficulty in documenting their income. However, obtaining a second mortgage with a stated income loan can be challenging because several factors can lead to potential default without proper documentation. Consequently, most banks, credit unions and lenders do not offer second- stated income home equity loans and credit lines. This is why BD Nationwide has been helping self-employed borrowers seeking limited doc HELOCs and no doc mortgage loans to refinance primary residences and rental properties or access cash without paying off a primary mortgage with a low interest rate. If you gave a variable rate HELOC, consider a fixed rate home equity loan refinance when the Fed drops the key interest rates.
With the enactment of the 2010 Dodd-Frank Act, stated income loans for owner-occupied properties became illegal with conventional mortgage lenders. Traditional lenders are now required to fully document a borrower’s ability to repay the loan, either through income or assets. However, stated income loan programs still exist for real estate investors, as they are not purchasing an owner-occupied home.
This change has put some borrowers, particularly self-employed individuals and freelancers, at a disadvantage. Fortunately, there is a type of loan that caters to their needs called a bank statement loan, also known as an alternative income verification loan.
Are Stated Income Mortgages Right for You?
Stated income loans can be a practical option for certain borrowers, especially those looking to purchase additional rental properties or flip a property that requires renovation. Investors often use these loans temporarily, particularly when they have a significant cash advance on the horizon but don’t want to miss out on a promising investment opportunity.
Some investors prefer not to use all their available cash to purchase a property. Instead, they opt for stated income loans to preserve a portion of their capital for future investments. Also known as no-doc mortgages, stated income loans were a significant factor in the last housing downturn. At that time, borrowers could secure a mortgage without providing income documentation.
Stated Income Loans for Real Estate Investors
Although stated income loans are not offer from traditional mortgage companies for borrowers on owner-occupied properties and cannot be used to purchase a primary residence, they remain an option for those looking to buy an investment property. The stated income loan program and bank statement loans are particularly beneficial for real estate investors, house flippers and self-employed individuals who want to purchase a non-owner-occupied property without fully documenting their income or providing tax returns.
Linda’s Helpful Hints about a Stated Income Mortgage Loans (Ask Linda?)
There are several different types of reduced income documentation loans. If you are applying for a stated income program, ask your loan consultant if you need to verify assets. If you are required to verify assets, then you will need to document 3-6 months of reserves depending upon the lender.
The reserves are measured by month and they are looking for funds that total p.i.t.i (principal+ interest+ taxes & insurance) so if your p.i.t.i. totals $2,500 a month and the lender requires reserves of 3 months, and then you will need at least $7,500 in liquid assets.
When Is The Best Time For a Reduced Doc Home Equity Loan?
Second mortgages can serve as effective instruments for funding home improvements, investments, and consolidating credit card debt. Home equity lines of credit contribute to improved cash flow and offer flexibility for investment purposes.
Possessing an equity line of credit can establish a safety net of cash reserves for both family emergencies and investment opportunities. While second liens may not be suitable for everyone, we recommend obtaining approval for a home equity loan during times when you need it the least. If you have been told that your fico scores are below average than consider a home equity loan for bad credit.
Take advantage of today’s low rates, and consider a 2nd mortgage that allows you to keep your existing low rate 1st mortgage. Nationwide works with some of the few loan companies to offer No income No assets loans.
This stated income mortgage allows you to maximize your home financing. Find lenders that still offer “No Doc” second mortgage loans that require No Income documentation & no verification of reserves.
Free Quote for Best Second Mortgage Rates
Get an accurate quote for a second mortgage, refinance or home purchase. Our professional team will help you discover the reality of today’s interest rates. We will help you understand the different loan options and how they apply to your credit qualification.
