Stated asset loans were quite the popular mortgage program a few short years ago and stated asset lenders were much more commonly available than they are today. The lenders offered flexible guidelines and low stated asset rates, unfortunately after the credit crisis the lenders were quick to get rid of the stated asset programs. Stated asset loan programs has helped borrowers who had unique situations or difficulties getting approved for other loan programs. This loan program is highly popular for small business owners.
Stated Asset Loans are popular and a favorite loan option for many. Here are a few examples of borrowers that may consider getting a stated asset loan:
Someone who works primarily with commission based salaries. These types of borrowers may have a low salary base in general, but they make most of their earnings by commission.
Self-employed people or those who own a small business
Someone who is unable to provide income documentation for the past 2 years.
Individuals who make a good amount of money but wish to not disclose their income information.
In 2016, Guidelines Vary By Lender
Now that stated asset loans are being offered by lenders again, borrowers can take advantage of the loan program by using it to help get refinanced on their current home or to buy a new home. The guidelines are always going to vary by lenders. Usually lenders will establish a stated asset product and then build their guidelines around it. Some of these stated asset programs have been known as;
- Low Doc
- No Doc
Stated Asset Lenders
Every lender is different and not all lenders offer stated asset loan programs. Majority of loan officers know that stated asset loans can help small business owners get into a home. Stated asset lenders are typically with smaller companies and a stated asset loan is usually not offered by the bigger lenders. Lenders who do offer this program attract good business and in the long run creates a beneficial result for both the lender and borrower.
Stated asset loan programs will vary based on the guidelines set by the lenders. This is why it’s important to shop around and compare lenders, so you can find the best lender and deal to fit your specific situation.
Stated Asset Interest Rates
Much like the guidelines, stated asset interest rates will most likely vary depending on the lender. Usually stated asset loans have higher interest rates than a more traditional FHA home loan. Stated asset loans carry a premium and they are usually quite competitive.
Frequently Asked Questions
What is a SIVA loan? Stated Income Verified Asset or known by its short name SIVA, is a type of loan that allows you to state (rather than providing your pay stubs) your gross monthly income. This loan will require that the lender confirm your assets, which is usually done by providing your lender with your bank statements, or other documentation that can efficiently verify your claimed assets on the loan application.
What is a SISA loan? Stated Income Stated Assets or SISA, is a loan that has some restrictions, but will allow you to state (rather than provide documentation) your income and assets. This means that you will not have to verify assets or your income like you would with a SIVA loan.
What is a No Doc loan? Depending on your lender, a “no doc” loan program does not require you to verify any asset or income information other than just your citizenship.
What if my income is too high, can I be declined? Yes, it is a possibility that your loan could be declined due to your income isn’t matching up to your job title and description. For example, if you’re a waitress but claim you’re making $60,000 monthly, the underwriter on the loan is going to question and take another look at your file. Every job has a median pay range depending on location and other factors. Underwriters can use resources that allow them to see the pay range for specific job titles and descriptions. Even though they are not always exact or accurate, underwriters are usually in the right ballpark.
**There is a possibility that an underwriter your lender may require you to fill out an IRS Form 4506. This will allow the lender to request from the IRS verification of your tax returns for the most recent past 2 years.
Is there a minimum credit score? The minimum credit score requirement will depend on your lender and will vary by lenders and by loan programs, be sure to shop around to find the right lender who can work with your situation.
Is there a minimum down payment required? The minimum down payment requirements will vary depending on the lender and program, but keep in mind stated asset programs usually require a higher down payment than conventional loans.
Getting the Best Deal
To find the best deal when looking into a stated asset loan will require quite a bit of shopping around. Not all lenders offer stated asset loans and the ones who do usually only offer select products. You may find multiple lenders who offer the same programs, but not always the right program for your situation. Finding the right lender for you and your situation can’t get much easier than starting right here. It’s fast and easy, just submit your information and we do all the hard work for you and find you the best lender that matches your situation. Did we mention it’s free?