A stated asset loan, similar to a stated income loan, gives you a little flexibility in your qualification requirements if you do not have a straightforward salaried job that allows you to easily verify your documents. While many people assume this loan is no longer in existence, many lenders are bringing it back. You will have to search the smaller lenders rather than the large, commercial banks, but a mortgage is a mortgage no matter who it comes from! If you are diligent in your efforts to get a loan without standard verification, you can make your home ownership dreams come true just by applying with the right lender.
Ensure your Credit is in Line
The first step to ensure that you are able to get a stated asset loan is to have good credit. If you had some hiccups in the past, make sure that you take the time to straighten them out. Typically, the last 12 months of your credit history should be blemish free, meaning no late payments and only a small portion of your available credit being used. Lenders do not want to see your credit cards maxed out and numerous installment loans when you apply for a mortgage. Instead, they want to see a few accounts in good standing. In terms of your revolving accounts, aka credit cards, they want you to have less than 30 percent of your available credit used. This shows that you can use your credit and pay it off without maxing things out and only making the minimum payments.
As far as a credit score is concerned, there is not one credit score you have to have for every lender. You will have to shop around with the various lenders to see what they have to offer. Some lenders are willing to take on lower credit scores in exchange for other compensating factors, such as a low LTV, while other banks strictly want a certain score and will not grant any exceptions. You have to shop around with various lenders to find out what is available out there.
Have Proper Verification
If you are stating your assets, make sure that there is no question about your income. In other words, have reputable documents available for verification purposes. Typically, this means paystubs and W-2s if you are salaried or tax returns if you are self-employed. If you know that your income is lower on your tax returns because of the expenses you write off, maybe take a year off from those deductions in order to show your true income. This will help you get a better rate and term on your mortgage, which could be worth the little bit extra you have to pay on your taxes for a year or two.
In terms of stating your assets, make sure that they are in line with the industry you are in and not looking totally made up. Lenders want to be able to believe the numbers that you state, but if they are way off course for the industry you work in they will want to know where the money came from in order to ensure that you do not have any personal loans out there that are not reporting on your credit report but will play a role in whether or not you can pay the mortgage payments in the future.
Put Down a Large Down Payment
The down payment plays an important role in your qualifications as well. The more you put down, the less risky your loan becomes. Lenders look at it as you investing in yourself. The more money you have at stake in a loan, the more likely you are to make your payments on time. If you have 30 percent invested in a home, you are not going to let the bank repossess it in a foreclosure; instead, you are going to do what you have to in order to get those payments made. This helps the lender have a lower risk in the entire process and be more willing to allow you to state your assets.
A stated asset loan might not be the most common loan program in the market, but it is available, you just have to shop around. If you need this type of loan, make sure all of your other documents and credibility factors are in line with what lenders want so that you too can get the mortgage you need to become a homeowner.