Stated Income Loans (No Income Verification Loans)
Stated Income Loan / No Income Verification
The popular No Income Verification Loan (NIV)
also known as Stated Income - requires No W2's, No Pay stubs, and No Tax returns. The loan program is available to W-2 wage earners, 1099, Self-Employed, and retired people.
Note: Many of these flexible terms and conditions have changed as of 2008. Although, there are still some prgrams available in 2011, the equity required for a stated income mortgage refinance is usually 30% or more. A "no income verification purchase mortgage" will additionally require 30-percent down or more. Please discuss your loan situation with a licensed mortgage consultant.
If you need financing but your income is difficult to prove or document then the answer for you is a Stated Income or No Income Verification loan.
Review the Program Details for the available states (Currently CA Only). There are "3" types of NIV or No Income Verification loans for purchase or refinance that used to offer up to 90% financing explained below:
Stated Income Verified Assets Loan: (SIVA) - Loan approval is based on your stated income, credit history, and verified liquid assets. The "verified assets" should be consistent with the income claimed. Current programs require 30% on refinance loans and 40% for purchases. If that is not possible, see if you are eligible for the "VOE" program below.
Stated Income Stated Assets Loan (SISA) - This loan features no assets being verified. You only state your income and state your assets on the application. This program carries a slightly higher rate because the assets are not verified. No longer available on Home Equity Lines or Fixed Rate second mortgages due to credit market tightening.
No Ratio Loans - Similar to the programs above except that no income information is provided or verified on the application. This is not available at the moment.
Verification of Employment (VOE) Program - (as of 10/31/2010)
80% Loan; from $300,000 to $729,000 (need 660+ score, no income disclosed; NEW !! Review Details &Eligible States)
50% to 60% to $3,500,000 (if available; subject to change)
Stock Loans - Asset Based Mortgage
Up to 80% Loan; Rates from 3%, $100,000 to $40,000,000 See Details &Eligible States)
(no credit check, no income, no job disclosed)
(as of Nov. 2011, - Click Here for rules)
Requirements for States Income Loans:
Lenders usually look for a minimum of 2 years of self-employment history or employment history in the same field. Proof for minimum of 2 years employment history for self-employed borrowers may be accomplished by obtaining a typed letter from a accountant/CPA on their company letterhead to get verification of the borrowers self employment. If an accountant is not available, two years of business license or confirmation from 3 disinterested business associates may be required. Your ability to qualify for the loan is based on the income stated on the application. The income must be in line with your occupation. A federal signed 4506T tax form may be required by the lender prior to closing.
Credit & Reserves:
Borrowers generally need credit FICO scores over 700 (some are 740+ ; updated Nov 2011), with the mortgage not over 30 days past due in the last 12 months. Loan Programs offered on 3, 5, & 7 year ARM's. The borrower should have a minimum of 6 to 12 months of the mortgage payment in "personal" liquid cash reserves on a purchase or refinance for the best rate. At times, lenders may request you to have 10% to 20% of stated income in Liquid Cash Reserves on large jumbo loans. Reserves can be from checking, savings, cash, CD's, money market accounts, stocks, bonds, IRA's, 401k's, and Keogh accounts.
On cash out refinances, reserves can come from the loan proceeds and the credit score may need to be higher. The other programs (30 yr and 15 yr fixed) require less reserves.
NOTE: These terms are changing frequently to even stricter guidelines and may not be available at all. Currently, stated income loans are being offered by very few mortgage companies and private brokers. It just takes some digging around so understand it is a scarce program.
Often, investors and people who don't want to show their tax returns inquire about stated income or no doc loans for residential but also commercial property. That is something offered as well on 5+ units.
To get a rate quote and see what lenders have to offer on stated income loans, try our simple FREE Pre-Qualification process today.
* NOTE: Loan programs are subject to change without notice. We are not a lender. We simply display popular loan programs that mortgage companies are utilizing in the ALT-A market.
Find a Stated Income Commercial Mortgage for your income producing property such as an apartment building, office building, and retail properties.
