Stated Income Loans – Stated Income Lenders
Do stated income loans exist in 2022?
Stated income loans exist today but they are different now than what they used to be prior to the housing bubble. We will take you through your stated income loan options, what you need to qualify, and where you can find a stated income loan from one of our stated income lenders.
What Stated Income Programs Are Available Now?
In 2022, self employed and W2 wage earners are able to get stated income loans by using their bank statements as proof of income instead of supplying tax returns. This makes stated income loans, now called bank statement loans or alternative documentation loans a great option.
Self employed individuals have a problem in that they take all of the legal tax deductions, but then when it comes to applying for a mortgage they are showing a much lower net income. The net income after expenses is what makes it very difficult to qualify for a conventional mortgage.
The basic elements of today’s stated income loan program is for the stated income lender to see a steady flow of money coming into your bank accounts. They will typically use the last 12-24 months bank statements to get an average monthly flow. A percentage of the average deposits are used and will be considered to be “income”.
It is best to speak with one of our stated income lenders to get the specifics on the program and guidelines in your state and what can be done for you. We are helping people to get these loans every day. Click for a free consultation with a stated income lender.
Read our article about bank statement loans. They are today’s better alternative if you are self employed.
Stated Income Loan Benefits
- Helps self employed borrowers to qualify
- Does not require you to qualify using your tax returns
- Low down payment options available
- Stated income mortgage rates only slightly higher than conventional rates
Stated Income Loan Requirements
- You must be self employed for at least two years.
- There will be a minimum of a 10% down payment needed for a purchase or for a refinance you can borrow up to 90% of the value of your home. Some lenders require 15%.
- You will be asked to provide 12-24 months bank statements.
- You may also be asked for your tax returns but they will still use your bank statements to qualify you.
- Stated income credit score requirements vary by lender but the higher your credit score, the lower the down payment requirement will be from our stated income lenders.
- If you have a foreclosure or bankruptcy, then certain lenders may require a higher down payment
Pros and Cons of Stated Income Loans (Bank Statement loan)
- These loans allow self employed borrowers to qualify when conventional loans will not work
- No need to provide tax returns for qualification purposes
- Rates are still competitive even with the reduced documentation
- Stated income lenders may require as little as 10% down.
- You still need to provide bank statements
- None of the government programs such as FHA apply. There is no such thing as a stated income FHA loan.
- The rates are slightly higher
- These programs are not easy to find. This is where we can help.
**See our stated income loan frequently asked question section below
Stated Income Jumbo Loans
If you are self employed and you are looking for a jumbo stated income loan, then we can help you. Depending upon your credit, our jumbo stated income lenders determine what your minimum down payment will be. Jumbo stated income loans start at $453,100 and can go up into the millions depending upon the stated income lender.
Stated Income Loans for 1099 Contractors
If you are a 1099 contractor and cannot qualify for a mortgage using your tax returns, then a stated income loan may work for you. The lender will use income that makes sense for your occupation without having to document that income. You can expect the down payment requirements to be a bit higher.
Stated Income Loans for Investment Properties
You may also be able to find Stated Income Loans for Investment Properties. These are much harder to find and often the LTV requirement will be lower with the down payment higher. You can also expect the interest rate to be higher when you are looking for a stated income loan for an investment property.
In these instances, the lenders will look at the cash flow or anticipated income of the building or property when determining whether to proceed with a loan approval.
When using alternative underwriting standards to evaluate an investor loan, they may still require you to qualify using the personal income that you can document. It is for this reason why not too many people are successful when going this route.
Do you need a special mortgage for an investment property? We can help!
Stated Income Related Questions
What is a stated income loan?
A stated income loan is a mortgage where borrowers provide reduced documentation and qualify by using bank deposits as proof of income. Today, the reduced documentation requirement will be 12-24 months of your bank statements. This can be both personal and business bank accounts.
Are stated income loans still available?
Stated income loans are still available but not in the same format as they were before the housing bubble. In the past, borrowers did not have to document any income at all. Today, they use the deposits into their bank accounts as their proof of income.
Most self employed individuals have no problem showing a flow of money coming into their accounts. As a result, we are helping thousands of self employed borrowers qualify for this new version of the stated income loan.
Can I get a stated income cash-out refinance loan?
Stated income cash-out refinance loans are available if you qualify. The basic requirements for a stated income cash out refinance are the same as the non-cash out version. Each lender may have a cap on the total loan to value ratio. We can help you to find the right lender for you.
Who Are Stated Income Loans For?
Originally, anyone would apply for a stated income loan but now they are mostly available for self employed borrowers.
Can you get a mortgage without tax returns?
A stated income bank statement loan does not require you to qualify using your tax returns for qualification purposes but they may ask you to supply them anyway.
Can I get a stated income loan if I receive a 1099?
1099 income earners can qualify for a stated income loan if they have their last two years 1099 to provide to the stated income lender. They also will likely have to provide copies of bank statements showing steady deposits.
How Much Would I Have to Put Down for a Stated Income Loan?
The down payment requirement may vary for each stated income lender but you can expect to find a down payment requirement of anywhere from 10%-25%.
Is the stated income interest rate the same or higher than a conventional loan?
Stated income mortgage rates are typically higher since the lender is taking on increased risk. However, they are not too much higher and in general are typically reasonable. The rates are much better than what you will find with hard money loans.
Do I need to be self employed for a stated income loan?
You must be self employed to get a stated income loan and for a minimum of two years. You must be able to prove that you have had the business for two years by providing either something tangible like a business listing or even a letter written by your accountant would work.
Can I get a gift of equity for a stated income loan?
Yes, gift funds are available for these loan programs. The stated income lender may allow you to use a gift of equity for the entire down payment amount.
Are the closing costs higher for a stated income mortgage?
No, the closing costs should be the same as a conventional loan. Stated income lenders will be required to provide you with a good faith estimate just like conventional lenders.
Is it hard to find stated income lenders?
Stated income lenders are not your local bank. So from that perspective it is not that easy. You also are not going to find these programs by going to a place like LendingTree. We have been connected to the lenders who offer these programs for 15 years. You came to the right place. Just let us help you.
What states are stated income loans available in?
Stated income loans are available in all 50 states. We are connected with multiple lenders who can help in the state where you live. If you complete our contact form, we will analyze your situation and will determine which of those lenders would be the best fit for you.
Are Stated income loans available for investors?
Yes but the requirements are much different. For example, the down payment requirement will likely be higher.
Can you buy land with a stated income loan?
We are not available of any stated income lot loans. Keep checking back with us as lender guidelines often change.
Are stated income home equity loans available?
No, those loans do not exist. If you need to pull equity out of our home then you will need a stated income cash out refinance where you refinance your current loan plus cash out the additional funds that you are looking for.
Where can I apply or a stated income loan online?
We do not recommend that you apply online without discussing your options first with a stated income lender. Just complete our contact form here. It is not an application but just an initial gathering of basic information to determine which stated income lender is best for you. Then, you will have a discussion with the lender and determine whether you would like to move forward with your loan.
What Others Are saying
Refiguide.org says that 2019 is a great year for no income verification loans. They said the loans are making a come back and there are more programs today for borrowers than in prior years.
My Mortgage Insider says that stated income loans are great for borrowers who have stacks of tax returns.
CNBC reported that the return of stated income loans is like “housing deja vu again”. I think the writer at CNBC is forgetting a couple of key points here. First, back when the market crashed even salaried borrowers could get a stated income loan. Next, the loans were being packeged and sold as prime. None of that is happening now.
The Mortgage Reports says that there are 14 million self employed borrowers out there and this is a good time for them to get a loan. From the programs to qualifying it is much easier now for self employed individuals.
Picking the right lender – This article looks at the several different types of lenders and their risks vs benefits.
Mortgage Options for Self Employed Buyers – See what loan programs are available if you are self employed.
Questions to Ask your Mortgage Lender – Find out what you should be prepared to ask a lender when you are reviewing your mortgage options.
Jumbo Stated Income Loans – See what the largest loan amount is for you when applying for a stated income loan.
Non QM Loans – Which lenders offer Non QM loans and what are they?
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.
History of Stated Income Loans
Qualifying for a Stated Income Loan Before The Housing Bubble
In exchange for the additional risk referenced above, stated income lenders will typically have higher interest rates for these loans. There are just a few stated income lenders who can help in all 50 states. In fact, California has big problems right now because there are many self employed borrowers there, and only a handful of mortgage lenders who are into the stated income lending business.
Stated Income Loan Requirements before the Housing Bubble
Most stated income lenders required a minimum of 20% down or equity in the property plus a credit score greater than 640. Some stated income mortgage lenders may have accepted a lower down payment, and lower credit score requirements. Stated income lenders in California may require a larger down payment and the rates will most likely be a bit higher.
Most stated income lenders require a minimum of 40-50% down or equity in the property plus a credit score greater than 700. Some stated income mortgage lenders in New Jersey, Connecticut and Pennsylvania only require 30% down and there are no minimum credit score requirements. Stated income lenders in California may require a larger down payment and the rates will most likely be a bit higher.
Many people feel they need a no doc loan or a stated income loan but that may not necessarily be true. You should understand your mortgage loan options before doing anything. Then speak with a loan officer to get a free stated income rate quote based upon your particular scenario.
Other Helpful References
The Pros and Cons of Stated Income Loans – Mortgage 101
Stated Income Construction Loans – Construction Loan Center
The Mortgage Professor – Scapegoating Stated Income Loans – Washington Post
Stated Income Ruling Regarding Bankruptcies – Bankrate
Retirement Income – Spending your savings – Vanguard