California Stated Income Loans
In California, 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.
If you are self employed, live in California and cannot qualify for a loan using your bank statements, then a stated income loan may be right for you.
We are connected to the best California stated income lenders and we are continuously doing the research in the changed in the industry for you. We will guide you below, answer some questions, and then connect you with the best stated income lenders in California 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.
- Provide copies of your personal and/or business bank statements for 12 months depending upon the lender.
- There may be a minimum credit score requirement which can be less than 600.
- You will be required to the minimum down payment requirement of 10%.
Each California stated income lender’s requirement may be different depending upon YOUR scenario. What you can count on is having to provide 12 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 California stated income lenders will look for a credit score of 600. However, your credit score requirement will vary (more or less) based upon other factors such as your down payment amount, cash reserves and whether you have a bankruptcy or foreclosure in your history. We have been able to help California borrowers to get a stated income loan with scores below 500. 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 10% and sometimes 20%, but it is possible that it can be as much as 25% down. 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.
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California Stated Income Frequently Asked Questions – FAQ
Who are California stated income loans for?
Stated income loans are strictly for the self employed or individuals who are 1099 earners.
What is the benefit of a California stated income loan?
The immediate benefit is not having to qualify based upon the net income on your tax returns. Something most self employed borrowers struggle with due to all of the tax write offs.
Is the Interest Rate The Same or Higher Than a Conventional Loan?
Stated income loan rates are typically a bit higher since the lender is taking on increased risk. How much higher will depend upon your personal scenario.
Can I use deposits from my personal account to qualify?
Most stated income lenders will allow deposits into both business and personal accounts. However, your business deposits may not count fully.
I heard profit and loss statements are required. Is this true?
In some instances you may be required to provide a profit and loss statement. Certain states and/or lenders may require that. Just be prepared to provide the required documents if the lenders ask.
Related Articles….
Scapegoating Stated Income Loans – Washington Post
Stated Income Loans – Linked In
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.