In Arizona, stated income loans are available again. This is great news for all of the self employed individuals out there who have struggled in the past to qualify for a mortgage. At Dream Home Financing, we have been specializing in stated income loans for a very long time. We are connected to stated income lenders and we are continuously doing the research in the changed in the industry for you. Regardless as to whether you live in Maricopa County, Phoeniz, Tuscon or Mesa, we will guide you below, answer some questions, and then connect you with the best stated income lenders in Arizona who can discuss your personal scenario with you.
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What used to be called a stated income loan where you “state” what you earn and provide no proof is NOW called a “bank statement loan” where you provide copies of your bank statements to simply prove that you have money coming in and can afford your future mortgage payments.
- You must be self employed or a 1099 borrower for a minimum of 2 years.
- You must provide copies of your personal and/or business bank statements for 12-24 months depending upon the lender.
- You must meet the minimum credit score requirement. Typically 680 but also varies by lender.
- You must meet the minimum down payment requirement (see below).
Each Arizona stated income lender’s requirement may be different depending upon YOUR scenario. What you can count on is having to provide 12-24 months’ of statements. You will need to provide your business and/or personal statements to show a flow of money coming in. The lender will use a percentage of your deposits to qualify for the loan.
Most Arizona stated income lenders we work with will be able to fund your loan with just about any credit score. However, your credit score may result in changes in other requirements such as your down payment amount, cash reserves and whether you have a bankruptcy or foreclosure in your history. Click to learn how to improve your credit score yourself.
This will absolutely vary based upon the state, lender and credit score. The absolute minimum down payment will be at least 10% and sometimes more depending upon your scenario. Remember that the lenders are taking a risk by using bank statement deposits rather than your net income on your tax returns. So, their way to cover their risk is to make sure there is enough equity in the home in the event of a foreclosure.
- Single Family Residences
- 1-4 family buildings
- Condos
- Townhouses
- Manufactures Homes
- Commercial/Investment – loan requirements will likely be different.
Stated Income Refinance
If you already own your home, you will be able to get a stated income refinance. If you are trying to pull some of the equity out of your home then a stated income cash out refinance may also be possible depending how much equity you have in your home. The requirements for a stated income refinance are virtually the same as if you were purchasing the home.
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Stated Income Frequently Asked Questions – FAQ
Q: Who are stated income loans for?
A: They are strictly for the self employed or individuals who are 1099 earners.
Q: What is the benefit of a stated income loan?
A: The immediate benefit is not having to qualify based upon the net income on your tax returns. Something most self employed borrowers struggle with.
Q: Is the Interest Rate The Same or Higher Than a Conventional Loan?
A: Stated income loan rates are typically higher since the lender is taking on increased risk. How much higher will depend upon your personal scenario.
Q: Can I use deposits from my personal account to qualify?
A: Yes, most lenders will allow deposits into personal accounts.
Q: I heard profit and loss statements are required. Is this true?
A: In some instances yes. Certain states and/or lenders may require that. Just be prepared to provide the required documents if the lenders ask.
We are able to help you to find a stated income loan with the best stated income lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.