Do you own your own business, work as a freelancer, or make most of your money through investments? If so, you may scratch your head at the traditional loan application paperwork requirements. How are you supposed to prove your income if you do not have a W-2? And what if your tax return isn’t an accurate representation of your financial situation?
Obviously, self-employed people do manage to get residential home loans as well as mortgages to invest in second homes, vacation rentals, or commercial properties. The trick is to apply for what is called a “stated income loan.”
What is a Stated Income Loan?
A stated income loan is one which does not require the standard full documentation that a traditional mortgage does. That means you do not need to provide a W-2, your tax return, or any pay stubs.
Because there is no need to provide all these documents, the stated income loan process has the additional advantage of being rapid and easy.
What Do You Need to Qualify?
If you do not need to prove your income, you may be wondering what factors are considered when evaluating your stated income loan application. Here are what lenders consider:
- Your credit scores. This requirement may be higher than it would be with a traditional loan. Ideally, your score should be 700 or above.
- Significant cash reserves. These too will need to be higher than they would be otherwise. The more you have in savings, the more competitive your application will be. To show your cash reserves, you may need to provide bank statements. These also will help demonstrate the flow of money in and out of your accounts.
- Your financial history may also be considered (i.e. any history of bankruptcies, foreclosures, and so forth).
If you have any questions about what you need to successfully apply for a stated income loan, we can answer those questions during your consultation.
Apply for a Mortgage Without a W-2 or Tax Return Now
Many more mortgage companies than in the past are now offering stated income loan programs. But often, that is not their focus. At Lending Bankers Mortgage, stated income loans and bank statement loans are among our top mortgage products.
We have extensive experience approving these types of loans and are familiar with a wide variety of income scenarios. No matter how you pay your bills, chances are good we have worked with customers in the past with similar situations.
We also work with a broad network of lenders throughout the Miami region. This means that no matter what your situation is, we can match you with a stated income loan to fit your needs.
If you are ready to apply now for fast and easy financing with a stated income loan, please give us a call today at (786) 220-1100. You can also email us at firstname.lastname@example.org. We can’t wait to help you with your mortgage needs.