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What is Stated Income? |
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Stated income
essentially allows an eligible borrow to state
their income on a loan application without
having to provide the necessary documentation to
support the amount of income stated - such as
tax returns, pay stubs etc. |
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Why would anyone want to use stated income? |
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In
today's world many consumers receive income
which is derived from non-traditional sources or
are involved in earning income from multiple
sources which would make the trail of paperwork
leading to income verification quite lengthy.
Stated income is an option that provides a
convenient alternative for processing a loan
application - to the applicant and the
lender. |
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Why
would a Mortgage Lender offer Stated Income as
an option? |
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Mortgage lenders have always been forced to
become creative in their loan offerings and
stated income is no more a feature of the
marketplace than an adjustable rate mortgage is.
Many consumers have great track records for
paying their bills on time and lenders
understand there are more ways to analyze an
applicant than simply basing a decision on how
much income an applicant can verify. With
that said, lenders will offset their risk of
accepting non-verified income by requiring that
applicants meet certain minimum credit score
requirements, demand that the income stated is
reasonable for the applicant's employment and
that the employment from which such income is
derived has been stable for a minimum period of
time. |
