Stated Income Loans

When it comes to getting loans approved there are many options that you have available.  Most people who are looking at getting loans apply for traditional full documentation loans.  These loans require you to prove your income and your assets in the loan application.  One of the difficulties that people have regarding traditional documentation is proving their income.  If you are self employed or do contract work you will probably find it difficult to prove your entire earnings.  This is where stated income loans work very well.

The benefit of applying for a stated loan is that you don’t have to worry about proving your income in the loan application.  These loans can vary by the degree that they require you to prove your income.  In some loans you might be required to show limited documents.  This means that you might need to show information like your tax returns and all of your assets.  In no doc loans you might be able to get away without proving your income or your assets.

Whether or not you decide to apply for a stated income loan depends on your situation.  If you have no trouble proving your income then you should go ahead and apply for a traditional loan.  Because full documentation loans require you to fully prove your income and your assets, the interest rates are also lower.  Stated loans have a higher interest rate then most traditional documentation loans that people use.

The major benefit that stated loans offer people is the ability to get approve for a loan without have to worry about all the paperwork.  The convenience factor is very important for anyone who is looking to apply for a loan.  There are many different types of stated loans that you can apply for.  People who are looking to get a mortgage loan could consider getting a stated home mortgage loan.  These loans would allow the borrower to show previous tax returns and bank statements to prove their income.

One drawback of stated loans is that some people consider these loans to be “liar loans.”  It is often believed that people who apply for stated income loans are doing so in order overestimate their income in their loan application.  For this reason many lenders want to ensure that they borrower has a good credit rating when they apply for the loan.  You will need to have a good history of making loan payments if you want to get accepted for one of these loans.