Stated Income Loan in Arizona

April 13, 2010

A stated income  loan in Arizona is a loan where the mortgage lender verifies employment and assets, but not the income that is received. Instead, an income is simply stated on the formal 1003 application Stated income on the application must be realistic for the employment type. Stated income mortgage loans are ideal for those whose employment and assets are verifiable, but whose income is not verifiable due to write offs and other expenses from being self-employed. Joe Hansen with VIP Mortgage can help you get the stated income loan that you need.

Stated income mortgage loans are available currently as an adjustable rate mortgage loan. Because the mortgage lender qualifies the borrower only off employment and assets with a stated income mortgage loan, the qualifying guidelines are stricter and the interest rate is also somewhat higher than it would be for a regular full doc mortgage loan. Stated income loans currently require as much as 40% down and as high as 24 months mortgage payment reserves.

Key Points

  • Both employment (Via 3rd party CPA & Advertisements e.g. – website, newspaper, yellow pages, and assets are verified for a stated income mortgage loan.
  • Income is not verified for a stated income mortgage loan–it is simply stated on the formal 1003 application. Employment is verified.
  • Stated income mortgage loans have more stringent qualifying guidelines and higher interest rates than regular mortgage loans.
  • Stated income mortgage loans have higher down payments than regular conventional or FHA loans

Pros

  • Stated income mortgage loans give people who might not otherwise be able to qualify for a mortgage the ability to purchase or refinance at a competitive interest rate when they usually would not be able to qualify at all due to debt to income restrictions.
  • There are a variety of stated income mortgage loans available in today’s market, including both fixed rate stated income mortgages and adjustable rate stated income mortgages.  However, most banks that do offer stated income loans are requiring and adjustable rate mortgage.

Cons

  • Because mortgage lenders qualify borrowers for stated income mortgage loans off only employment and assets, they typically have higher interest rates and monthly payments than regular mortgage loans. 
  • Higher down payments are also required
  • Like all specialized mortgage types, there are fewer stated income mortgage loan programs available than regular loan programs and only a few banks currently offer this product in Arizona

As a stated mortgage loan specialist in Arizona I can help you obtain a loan for your home.  You can contact me at 480-239-7766 or email me at JoeHansen@vipmtg.com.  You can also fill out an application at my website: www.joehansenmortgage.com

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