Stated Income Loans

Stated income loans require little verification to receive money. Stated income loans generally require no pay stubs, W2's or tax returns. For those who have difficulty verifying their earnings, stated income loans may just be the answer. Usually this group includes borrowers that make tips, bonuses and commission as their sole form of income or are simply self-employed or are retired and live off of their investments.

Several different types of stated income loans exist, depending upon the lender. Some stated income loans are available for those with FICO scores as low as 580 - 640. Usually the borrower's statement or assertion of their income is enough to get the loan along with some assets. There are, however, some leaders that offer stated income and stated asset loans, which means that neither the income nor the assets are verified by the lender. These loans generally carry a slightly higher interest rate for the borrower since the lender accepts more risk with this method.

There may be some other caveats when applying for a stated income loan such as being with the same employer for 2 years, several credit accounts and no bankruptcies within the last 3 years. Also, the borrowers title must match closely to the stated income. As an example, a high-school janitor reporting $10,000 per month in earnings would be suspect.

Stated income loans can be used for new purchases, refinancing your current home and home equity lines of credit. Some lenders even offer stated income loans for commercial and non-residential real estate as well.

Stated income loans may also be desirable for privacy-advocates who are willing to pay a little more in interest rates in order to keep their money matters private. No matter which kind of borrower you may be, stated income loans are at least worth considering if an alternative is what you need.