What are the benefits of stated income interest only loan?
Answer:A stated income interest only loan has the benefits of stated income mortgages combined with the attractiveness of interest-only option.
Benefits Of Stated Income Interest Only Loan
- The interest-only option does allow the borrower to qualify for higher loan amounts.
- It maximizes cash flow and tax deductions. Regarding tax deductibility, always contact a tax advisor.
- Even though interest only payments are required, some loans make it possible to pay towards the principal without any prepayment penalties.
Stated income interest only combined allows different levels of loan documentation, particularly helpful to those who are self-employed, or have a difficult tax return. Different levels of stated income/assets will let you get your loan without disclosing and/or verifying income and/or assets, depending on the available program.
Final piece of advice: Monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity. Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you. Higher scores usually mean lower interest rates, which will save you money.
See All 3 National Credit Scores & 3 Reports Instantly, Online & Free!
| Not at all | Definitely |
Mortgage QnA is not a common forum. We have special rules:
- Post no questions here. To ask a question, click the Ask a Question link
- We will not publish answers that include any form of advertising
- Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
Common misspellings: mortage and morgage