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A stated income loan is a mortgage where the lender does not verify the borrower’s income by looking at their pay stubs, W-2 (employee income) forms, income tax returns, or other records. Instead, borrowers are simply asked to state their income, and taken at their word. This loan is traditionally used for self-employed borrowers or borrowers who have trouble providing full documentation.
● Must be 18 years or older
● U.S. Citizens
● Green Card Holders (non U.S. Citizen)
● H-1B Visa & EAD Card Holders (non U.S. Citizen)
| CRITERIA | PORTFOLIO 1 | PORTFOLIO 2 | PORTFOLIO 3 |
|---|---|---|---|
| TERM | 7/1 ARM | 7/1 ARM | NO U.S. CREDIT SCORE REQUIRED |
| CREDIT SCORE | 700 FICO | 680 FICO | NO DTI RATIO |
| LTV | 60% MAX LTV | 70% MAX LTV | UP TO 75% LTV |
| EMPLOYMENT | W2 / SELF EMPLOYED | W2 / SELF EMPLOYED | W2 / SELF EMPLOYED |
| PROPERTY TYPE | PRIMARY/2ND HOME / INVESTMENT/ 2-4 UNITS | PRIMARY/2ND HOME/ INVESTMENT/ 2-4 UNITS | PRIMARY/2ND HOME/ INVESTMENT/ 2-4 UNITS |
| LOAN AMOUNT | MIN LOAN : $100,000 MAX LOAN: $2.5 MILLION | MIN LOAN : $100,000 MAX LOAN: $2.5 MILLION | MIN LOAN : $100,000 MAX LOAN: $5 MILLION |
| LOAN PURPOSE | PURCHASE/REFI/CASHOUT | PURCHASE/REFI/CASHOUT | PURCHASE/REFI/CASHOUT |
| DTI | 43% MAX DTI | 43% MAX DTI | 45% MAX DTI |
| RESERVES | 12 MONTHS RESERVES | 12 MONTHS RESERVES | 12 MONTHS RESERVES |
| PRE-PAY PENALTY | PRE-PAY PENALTY- 24 MONTHS | PRE-PAY PENALTY- 24 MONTHS | PRE-PAY PENALTY- 48 MONTHS |
| STATES | CA ONLY | CA ONLY | CA, FL, TX, OR, CO |
| PROS | CONS |
|---|---|
| Quicker Application Process – Less Due Diligence | Higher interest – Has a higher cost for less hassle |
| Self-Employed Borrowers – No Income Docs Required | Higher chance of Default – Ability to Repay is not verified |
A stated income loan is a mortgage where the lender does not verify the borrower’s income by looking at their pay stubs, W-2 (employee income) forms, income tax returns, or other records. Instead, borrowers are simply asked to state their income, and taken at their word. This loan is traditionally used for self-employed borrowers or borrowers who have trouble providing full documentation.
● Must be 18 years or older
● U.S. Citizens
● Green Card Holders (non U.S. Citizen)
● H-1B Visa & EAD Card Holders (non U.S. Citizen)
| CRITERIA | PORTFOLIO 1 | PORTFOLIO 2 | PORTFOLIO 3 |
|---|---|---|---|
| TERM | 7/1 ARM | 7/1 ARM | NO U.S. CREDIT SCORE REQUIRED |
| CREDIT SCORE | 700 FICO | 680 FICO | NO DTI RATIO |
| LTV | 60% MAX LTV | 70% MAX LTV | UP TO 75% LTV |
| EMPLOYMENT | W2 / SELF EMPLOYED | W2 / SELF EMPLOYED | W2 / SELF EMPLOYED |
| PROPERTY TYPE | PRIMARY/2ND HOME / INVESTMENT/ 2-4 UNITS | PRIMARY/2ND HOME/ INVESTMENT/ 2-4 UNITS | PRIMARY/2ND HOME/ INVESTMENT/ 2-4 UNITS |
| LOAN AMOUNT | MIN LOAN : $100,000 MAX LOAN: $2.5 MILLION | MIN LOAN : $100,000 MAX LOAN: $2.5 MILLION | MIN LOAN : $100,000 MAX LOAN: $5 MILLION |
| LOAN PURPOSE | PURCHASE/REFI/CASHOUT | PURCHASE/REFI/CASHOUT | PURCHASE/REFI/CASHOUT |
| DTI | 43% MAX DTI | 43% MAX DTI | 45% MAX DTI |
| RESERVES | 12 MONTHS RESERVES | 12 MONTHS RESERVES | 12 MONTHS RESERVES |
| PRE-PAY PENALTY | PRE-PAY PENALTY- 24 MONTHS | PRE-PAY PENALTY- 24 MONTHS | PRE-PAY PENALTY- 48 MONTHS |
| STATES | CA ONLY | CA ONLY | CA, FL, TX, OR, CO |
| PROS | CONS |
|---|---|
| Quicker Application Process – Less Due Diligence | Higher interest – Has a higher cost for less hassle |
| Self-Employed Borrowers – No Income Docs Required | Higher chance of Default – Ability to Repay is not verified |
