Question:

When to use stated income home mortgage loans?

Answer:

Stated income home mortgage loans can be a very attractive alternative to full doc loans. Especially if you have a particularly high credit score, stated income home mortgages may be most convenient and smart to use.

Stated Income Loans Benefit the Good Credit Borrower

If your credit score is 720+, why bother with Full Doc loans at all? All this paperwork hassle for a loan you will probably refinance within 3 to 5 years - is it worth it? With 720+ you will get slightly higher rates and slightly higher mortgage payment. However, the difference will be insignificant compared to the ease of mortgage application and achieved privacy. The excellent credit borrower will be spared income and asset verification. Also, the No Ratio loan will allow you to have income to loan ratio of 60%, if you so desire.

If you are in need of a jumbo or super jumbo mortgage, you can get one stated income, for sure. Also, stated income home mortgages are available widely for first and second mortgage loans, as well as for investment properties.

In short, a responsible self-employed borrower with excellent credit should be encouraged to use stated income loans as a true counterpart of full doc loans. Not only are they more convenient to use, but one is truly amazed at how easy the loan process becomes when one of the stated income options is used.

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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