Low Doc or Stated Income Loans

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NOTE FROM EDITOR:  As of late 2008, Low Doc loans are no longer available. 

Stated-income
( sometimes called No Income Verification ) mortgages are generally used by people with good credit histories who do not wish to document their incomes, for one of many reasons. The income is stated but not verified, and this program is ideal for the self-employed borrower with complicated tax returns and financial statements.   We do not verify your income, though we may, for some programs, verify your assets to get you a lower rate.

 

The rate is slightly higher, but can be lowered to ALMOST standard rates by verifying assets, putting more than 20%, and having very good credit.

 

If you are self-employed, normally we verify 2 years of self employment with business licenses, a letter from your CPA, or a tax return with the income numbers blacked out.
 
It is sometime used by people that have 20% to put down, but do not make enough income to qualify under standard programs.

However, there are programs that allow stated income and stated assets, up to 95% of the value of the property. 
 
No-doc programs are more lenient, but the rate is a bit higher.  You don't even need to have a job, or assets!  The entire down payment can be a gift.
 
Low-doc loans
are becoming more common these days.  With computer underwriting, a normal loan with the lowest rate available becomes a low doc loan, if the customer has great credit and income.  This means no tax returns, no paystubs, even a limited appraisal at times.

Low doc loans do speed up the loan process, by lowering the amount of documentation we need.  

 

There are many, many options here - the best thing to do is to apply online, and we can provide firm quotes.