What Are Stated Income Loans? This is a type of loan where the borrower is not required to provide W-2 forms or similar records in order to verify their income. The borrower simply states their income. Also known as no income documentation (or no doc) loans, stated income loans are available in most areas of California.


Benefits and Considerations

No income documentation loans are ideal for those who invest in real estate or those who are self-employed (as this can be a challenge for documenting income). These loans are a great option to help potential buyers or those wishing to refinance qualify for a loan where normal loan standards would not be acceptable. Typically, the combination of one’s mortgage and other loan payments are not to be more than 50% of one’s income. However, if investing in real estate or given other special circumstances (such as being self-employed) the sum of mortgage and loan payments can look much higher than 50% of one’s income—even though in reality, the consumer may have a large amount of disposable income.

How Do Stated Income Loans in CA Work?

As a mortgage applicant, you don’t have to provide tax returns or pay stubs to show your income. Stated income loans through Elite Financial are not hard money loans — loans at considerably higher interest rates and fees. Instead, Elite Financial offers stated income loans from institutions that specialize in these programs; this is exciting news for many, as consumers who weren’t able to qualify before can now potentially receive approval. Cross collateralization offers flexibility in using multiple properties to help secure funding or refinancing and an excellent means to secure financing when proof of income is an issue. These loans also offer the unique advantage of being available to entities such as corporations, LLCs, partnerships, and trusts. Stated income loans can be qualified by cash flow (bank statements), FICO score, rental income, cash reserves, and loan-to-value in and of itself (or in combination). These standards greatly enhance qualification, and can be used to purchase, refinance, or refinance taking cash out of the property. For stated income loans throughout California, minimum FICO scores will vary, as will the loan to value. These loans are offered for both owner-occupied and investment properties.

Why Choose Elite Financial as your Mortgage Lender?

Elite Financial administers no income documentation for rate and term, purchase, and cash out refinances—although usually not including rural areas and large acreage lands. Elite Financial offers Stated Income Loan options specifically for people who own and occupy their homes and for those looking to acquire investment loans. For more details on stated income loans, contact an Elite Financial mortgage professional today.