Are there stated income lenders for investment properties?
Answer:There are many lenders offering full doc and reduced documentation loans. Stated income lenders don't specialize in stated income loans only; rather they have a whole suite of mortgage loans targeting different group of borrowers. Commercial lenders would provide stated income loans as a common opportunity for investors. There are residential loan lenders who also fund loans for second home and investment properties.
Stated income lenders consider investment properties a greater risk.
For some reason, stated income lenders assume that it is riskier to provide financing for rental and business properties rather than for a personal residence. This argument is supposed to explain the higher rates for stated income investment financing.
Even though there is plenty of financing available for borrowers with less than good credit, lenders feel free to offer stated income loans to people they should run a check on. Higher rates on stated income loans for troubled credit borrowers are justified by lenders. Stated income commercial property financing will have even higher rates.
Privacy is another reason to inflate rates. Stated income lenders consider the right to privacy something that should be sold dearly. Also, the higher the LTV for an investment property, the higher the rates of the stated income mortgage loan. It is easier to obtain 100% stated income financing for a primary residence, compared to 100% for investment properties.
Even though 100% financing with stated income is better available for owner-occupied properties, stated income lenders for commercial properties can be easily located online.
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