The stated income loans became quite a problem option during early 2000. Thus, they are no longer valid now. After all, the lenders approved the loans based on the income status mentioned on the loan application. They didn't check any income documentation to verify the accurate income of the borrower. Thus, an act passed in 2000 made using stated income loans for owner-occupied properties illegal. Now when you look for stated income loans in Florida, you will not have many options available. Thankfully there is an alternative to get the funding.
Get the
right loan
As a
self-employed borrower, it will be difficult for you to qualify for traditional
mortgages due to tough documentation requirements. Luckily, there is an
alternative for the state: bank statement loans. It will be quite helpful for
the lenders to use the bank statement to confirm the borrower's income rather
than checking the tax returns. In addition, each lender has their underwriting
requirements for determining the net income. So if you don't qualify with one
lender, you can use another for help.
The
stated income loans do not exist for owner-occupied properties. But they are
still available to purchase an investment property. It will be quite a big help
for those borrowers who like house flipping or are self-employed borrowers etc.
Real estate investors can make use of the loan for the purchase of another type
of property or for flipping a property. Some borrowers also use the stated
income loans in Florida to temporarily fill up the cash reserve.
The
stated income loans are growing. It will be a step up from the hard money loans
but will come with a better interest rate. Remember, the qualification process
for the loans can be a bit tough. So make sure to enquire about it before you
get the confidence to apply for the loan.
Conclusion
