Posted on: 06th Jul, 2009 10:06 am
Why are stated income real estate loans so popular?
"Stated" income loans are very popular for Self-Employed individuals who cannot document their incomes. The process is a bit longer, but the required documentation is less which may draw the attention of the potential borrowers. I hope this helps...
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stated income loans have become more and more scarce. there is simply too much risk for most investors to take on, and they discourage them. also, loan to value thresholds have been reduced of late. lenders are requiring at least 35% down payment lately.
Stated income loans are still extremely popular in the sense that many people need them. George is correct that they are hard to find these days.
The people who need these loans are self employed borrowers. Many of them are taking advantage of the legitimate business deductions on their tax returns. As a result, the income reported on their tax returns is often too low to qualify. These borrowers are having trouble finding financing. There are millions of people in this situation.
The people who need these loans are self employed borrowers. Many of them are taking advantage of the legitimate business deductions on their tax returns. As a result, the income reported on their tax returns is often too low to qualify. These borrowers are having trouble finding financing. There are millions of people in this situation.
