Stated income, bank statement and asset depletion loans continue to expand the buyer base for qualified applicants that don’t necessarily meet the standardized qualification criteria.
Stated income loans are much more stringent than in the past, requiring borrowers to have more equity in the transaction. A minimum credit score of 680 is required and a maximum LTV of 70% loan to value. At least 6 months reserves (for principal, interest, taxes and insurance) are needed post closing, although most programs need at least $100,000.
Bank statement loans allow for the averaging of deposits on personal bank statements to qualify. Most programs require a minimum of 12 months of statements to be analyzed. Loan to value is capped in the 75-80% loan to value range.
Asset depletion loans allow for calculating, based upon sizable liquid assets, a monthly income based upon those assets. Calculations vary based upon the institution, but the ability to use assets to qualify, versus just reported interest or dividends earned, greatly enhances the ability to qualify.
By proving repayment ability, there are a number of loan programs today to help consumers purchase or refinance real estate that doesn’t fit the standardized computer generated underwriter analysis. Programs, rates and costs vary, but these alternatives open the market to otherwise shut out applicants. And unlike in the past, these programs are designed to assure both lender and borrowers the ability to afford the loans being made.
Elite Financial specializes in financing owner occupied and investment properties, for purchase and refinance. In addition to residential loans, Elite Financial finances Commercial, Industrial and Warehouse properties.