Question:

What do I need to get a bad credit stated income loan?

Answer:

There are always a lot of creditworthy people who are turned down by banks and private lenders because of their low FICO. Truth is there are lenders who specialize in this particular niche and would do a bad credit stated income loan even for a borrower with FICO below 600. Yes, rates will be high but you'll be getting your loan. And even if your FICO is shamefully low, it did have a reason to go there and perhaps it was beyond your power to control it.

Lenders do understand that some real bad credit borrowers could be in fact good risk; on top of that a bad credit stated income mortgage loan will have real high rates to make the lender happy.

What do I need to get a bad credit stated income loan?

First thing when applying for a bad credit stated income loan is to provide the 3-merge credit report and score. There are convenient websites on the web to pull it from.

Secondly, you might try to get your credit score repaired. Bad credit stated income will require 620 or even 640 middle score. If you are below the critical 580, you'd better take some time to improve it. For example, you could use credit repair services or repair it on your own. It will take time, but will be worth it.

Guidelines for bad credit loans do change all the time. In general, lenders will want to see that if you had a bankruptcy, it is at least 2 years old for a 100% bad credit stated income financing. If the bankruptcy is less than 2 years old, the LTV will drop according to lender guidelines.

Also, rental and credit history of at least 12 months is what is expected from you. If you are paying your rent by cash, don't have credit history for a line of at least $2,400 or have more than two 30-day lates, you may have difficulties going stated income.

In fact, 100% bad credit stated income financing is possible even if you are going through foreclosure. Even if it is a bad credit loan, it helps you and your credit.

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