Sometimes applying for a loan is challenging if you do not have the correct documentation or a stellar financial history. However, there are some loans available if you find yourself in a situation such as this. If you do not want your income verified and need a loan, a stated income loan is an option. Here are some benefits of this loan and the requirements you need to meet to be eligible.
Stated Income Loan Benefits
One of the main draws of stated income loans is the fact that your income is not verified. There is a reduction of the usual paperwork, and you save a lot of time. Also, if you have inconsistent income, this loan could be a solution. You may have erratic earnings if you are self-employed or have multiple sources of pay.
The processing time for these loans is often quick. Stated income loans can get you needed funds quickly if there is a property you want to purchase immediately. Even if you have the documentation and credit history you need to get a conventional loan, sometimes stated income loans are better because you can get the money in a short amount of time. Sometimes conventional loans take days, and the property you want to purchase is gone.
Another reason this funding type is beneficial is the fact that there is very little documentation required. Unlike traditional loans that require several different documents and forms, there is not much that you have to show for this loan.
To be eligible for this loan, you need to meet a few requirements. You will need a good credit score and a positive loan repayment history. While it is unnecessary to see your income or salary history, your loan repayment track record is one essential thing lenders will want to see.
Lenders will also want to see your bank statements from the last two to four months. Since they are not asking to see your tax returns, they need to know your ability to pay back a loan. Keep in mind that one other requirement is your ability to pay a high down payment. In most cases, if you cannot afford this down payment immediately, your application will be rejected.
Stated income loans can help you obtain property quickly. Be sure that you are in a suitable financial position to apply for this program and have all the needed documents available.