Question:

What is the eligible stated income loans credit score?

Answer:

Stated income loans credit score required to qualify you for prime rates depends on the LTV you will need for your loan. If you want 100% financing with a stated income loan, lenders will demand 680+ in most cases. The required credit score for reduced doc loans will drop depending on the financing you need. 70 or 80% LTV stated income loans with FICO of 640 will still get you prime rates. In comparison, 640 will be enough for a 100% full doc financing.

Subprime credit score will get you subprime rates on stated income loans.

Most lenders assume B credit is around 600 (middle score from all 3 bureaus), C credit is around 550, and D credit is 520 and less. 30-year fixed rate stated income loans carry the highest rates. 2/28 and 3/27 ARMs may have the best stated income mortgage rates. However, the difference in rates between borrowers with B and C credit scores can be from 3/8 of a point to a whole point. Rates for D credit stated income borrowers will usually be at least 1 point higher than rates for C credit borrowers.

Appraisals for stated income loans are often paid separately by the borrower and may not be included in the GFE. Rate buydown may be available, depending on specific lender and loan program.

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