Question:

Can I get high LTV stated income loan?

Answer:

Lenders allow different LTV for stated income loans depending on several criteria - such as credit score, type of employment, occupancy and seasoning.

Normally, a lender would allow 100% LTV stated income to borrowers with FICO over 700. Borrowers with FICO of 700+ will get prime rates on their stated income loans.

Should I take advantage of bad credit high LTV stated income mortgage loans?

The bad credit niche allows 100% LTV stated income with FICO as low as 640 and 80% LTV with 620. Bear in mind that this is a bad credit loan. Even if it is tempting not to have to sign a 4506T (the form empowering the lender to request your IRS file if something goes wrong with your loan), bad credit stated income with high LTV loan guidelines are in fact inviting the borrower to overstate income and get involved in a harmful mortgage fraud. Guess who is going to get hurt in the first place.

The fact that there are bad credit lenders with very loose loan guidelines does not mean that it is reasonable to use a high LTV stated income loan.

If a borrower simply has a low FICO but does have the resources to go stated income, they could benefit from the situation. However, for a borrower whose finances and assets are not sufficient for them to be successful with a high rate bad credit high LTV stated income mortgage - they could jeopardize their future financial stability and home.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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