When people think of stated income mortgages, they are often confused. An Arizona stated income mortgage is different compared to a traditional mortgage. While a traditional home loan is lent through a local bank, a stated income mortgage is lent through a private lending company. In this post we will take a look at whether a stated income mortgage is right for you and your situation. Additionally, we will discuss how a stated income mortgage works and where to find one.

Take from this situation: You found a home you really want. You have enough money saved for a down payment, but you need to find an institution that will lend you the additional amount of the house. Who do you lend from and more importantly, would you qualify as a borrower?

Well, it depends on your employment status, credit history and other past financial decisions. In a typical qualification process, the borrower must reveal his/her income and current employment. However there may be situations when you may not wish to use your employment status to qualify for a mortgage loan. You may be self-employed, like for instance, a contractor or insurance agent. Due to the ups and downs of income, it is hard for a bank to label you as a “low-risk” borrower. At this point you should look at another type of mortgage, known as a stated income mortgage.

A bank does not lend stated income mortgages. Instead they lend standard or traditional mortgages, which means that in order to be approved you must retain their requirements. A banking institution’s requirements for a home loan vary slightly between banks, but for the most part requirements are the same. For a typical loan it is ideal to have a standard paycheck from an employer, a long-term credit history and a high credit score. If you do not possess the requirements necessary to obtain a loan from the bank, there are other ways in which to get a mortgage.

The best way to find out how a stated income mortgage works is to speak to private lenders. There are many different types of private lending. Some private lenders are individuals while others are rather large companies. There is really no difference in whether a private lending company is large or small, however it is important that you are comfortable with your lender. Also when searching for a private lender, be aware of the advice you are given and whether they specialize in the area of home loans. Better yet, make sure the company or individual you are dealing with specializes specifically in stated income mortgages.

A company that specializes in stated income mortgages is Level4Funding. Not only do the people at Level4Funding knowledgeable in the area of stated income mortgages, they will help you buy the house you really want. Don’t delay. Call us today at 623-582-4444!

Dennis Dahlberg
Broker/RI/CEO/MLO