Stated Income Loans

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

What is a stated income loan or stated income mortgage? How is it like a no doc loan or full doc loan?

Below we will explain the differences and will provide some guidance.

Many people used to call stated income loans or mortgages “liar loans”. The credit score requirements were not very strict and the LTV or loan to value ratios were flexible. However, today that is not necessarily the case. READ MORE.......

STATED INCOME LENDERS

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

That is really great info! Usually I don't click on links but since I was literally just about to post this question after seeing a response you posted to David, I figured I should go ahead and do it.

I even saw PA listed on there which is great!

So basically a stated income loan means you don't have to show any proof of income, but can you still? Like in my case can I go in with my SO with his tax forms and my payment records (but no tax forms) and attempt to get a loan as long as we have the 30% down (I think that was the number for PA)?

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Right, if you are self employed for at least two years and can prove it, then you can get a stated income loan in PA with 30% down. However, they are limiting it to certain counties on the eastern part of PA

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

EricJ wrote: Right, if you are self employed for at least two years and can prove it, then you can get a stated income loan in PA with 30% down. However, they are limiting it to certain counties on the eastern part of PA

That doesn't make sense, I thought the point of a stated income loan was that proof wasn't necessary so that you didn't have to have two years of proof?

If you still have to have two years of proof of income, I fail to see the difference or the benefit to it...

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

You have to prove that you are self employed. That is different than providing income documentation.

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

Ah, I understand. I'm a little less excited now though, it sounded like a great option for me since I don't want to wait two years to get a home, but now it seems pointless.

I may as well just do the tax returns and wait the two years if I have to wait two years to just state my income without them anyways. I wouldn't fudge my income so there's no reason to bother.

Thanks so much for clearing that up for me!

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Nobody is talking about fudging the income. That is illegal.