Stated Income Home Equity Loans 2017

Finally a Stated Income Home Equity Loans for 2017. That is right we have this hard to find Stated Income Home Equity Loan. Right now it is only available in California. This loan can be in first position or in 2nd position on your property. Yes it is true you can get a stated income home equity loan on an owner occupied property.

Stated income home equity loans are structured to assist self-employed consumers and business owners overcome the difficulty of meeting the regular mortgage approval criteria that banks, financial institutions and mortgage lenders look to. Perhaps the key for the self-employed individual seeking to qualify for a home equity loan or secured line of credit process is the self-employed business persons debt service ratio.Whereas consumers with a fixed Stated Income Home Equity Loansemployment income have relatively few business write-offs, the self-employed have a myriad of legitimate tax write-offs that affect their income stream. Lenders accordingly want to look at the revenue stream that the self-employed have to service their existing debt load. Mortgage lenders each have a set debt service ratio – a threshold that the ratio of monthly income to expenses (including mortgage and loan payments) – which cannot be exceeded in order to qualify for a stated income loan. Proving one’s income stream and qualifiying a stated income mortgage under a lender’s DSR is a more complicated process than qualifying for a regular mortgage but need not be prohibitive.

Additionally, even consumers with a fixed salary or other income stream may have additional business income that could qualify them for either additional home equity funds or better lending rates than those they would qualify for based solely on their income from employment. In today’s economy it is more and more common for borrowers to have multiple income streams.

To find out more see our “Hot Loan Products” for rates and guidelines.

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