Can you explain stated assets mortgage loans?


There are different general categories to document a home loan and the stated assets mortgage is one of the major ones.

Stated Assets Mortgages and Others Explained

Full documentation has been the standard approach for evaluating the borrower's capacity to repay a loan. It verifies income, assets and employment - either directly through the borrower's employer and bank accounts, or through W-2s, bank statements and paychecks.

Stated income/verified assets and stated income/stated assets are mortgage documentation types allowing lenders to assess borrower's trustworthiness providing less information. With stated income/verified assets (SIVA) employment and assets are verified, but the income figure is not. Stated income/stated assets mortgage (SISA) requires even less information - only employment or income source is verified.

No ratio, no income and no asset verification mortgage loans and any combination of those also have great popularity and come very handy to qualify a borrower who has difficulties documenting a loan, or wants more privacy, or simply there are non-standard circumstances that cannot qualify the borrower under more exhaustive documentation types.

Even though full documentation mortgage is what every borrower should be seeking, reduced documentation loans have their role.

For example, if a relative is gifting you the down payment, you can't verify this and a stated income/stated assets mortgage should be used. If you can document your income and assets, but have a high housing expenses ratio, you will qualify under the No ratio guidelines.

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