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Is A Stated Income Loan For You?

Updated: Feb 9

The conventional mortgage lending process may be too difficult for a self-employed person wishing to apply for a mortgage loan.

Prospective real estate investors are restricted to applying for or securing a loan as self-employed individuals due to the mountain of paperwork, the necessary information regarding income, the bank account totals, and all the asset criteria.

For this reason, real estate investors turn to private money loans as a way to raise money for their investment properties.

A stated income loan, one of the most popular private money lending programs, enables the borrower to obtain funds without having to meet qualification requirements for their debt-to-income ratio.

Self-employed people who would not be eligible for standard financing can realize their investment goals with a stated income loan, which is easier to be approved for than a regular loan. Even though stated income loans have recently received a lot of criticism, they are the most suitable for some borrowers.

How to Be Eligible for a Stated Income Loan?

You must provide documentation of at least two years of self-employment to be eligible for a stated income loan. No W2 forms, liabilities, or other documentation are needed to prove income or employment.

Simply present your business license, bank statements from the last two months, and other documentation to your trusted private lender when you apply.

It is simple and quick to approve loans when self-employment documentation or bank statements are used as the basis rather than W2s and liabilities.

The following are some advantages of applying for a Stated Income Loan:

  • Very little paperwork

  • Payment sourcing is more quick and simple

  • Debt to Income Ratio is not taken into account by the underwriting standards.

What Exactly Is a Stated Income Loan?

Non-qualified mortgage loans, often known as NON-QM loans, are defined as loans from private money lenders with a specified income.

Both self-employed people and those who have a W2 as proof of income are eligible for a non-qualifying mortgage loan (NON-QM).

Since many mortgage lenders are hesitant to take the risk of financing to someone without a steady source of income, self-employed borrowers may find it challenging to qualify for a standard mortgage loan for their investment property.

Stratton Equities and other reputable private money lenders are happy to review your bank data and expedite the application process. They can do this because of the characteristics of a private money loan and the layout of their underwriting standards.

What Can Stratton Equities Do To Help?

If you want to buy an investment property but are concerned that being self-employed would prevent you from getting a typical mortgage, contact Stratton Equities at 800-962-6613, send us an email, or fill out an application for loan pre-qualification right away!

In order to give you the cash you require to purchase your ideal real estate investment property, our loan professionals will walk you through the process of applying for a stated income loan and will rapidly complete the application. This will allow you to run your business.

Get in touch with Stratton Equities right away, and we'll help you decide which financing is best for your real estate investment! We offer a wide selection of programs, the lowest private money rates (Beginning at 7.46% / Up to 80% LTV), a helpful, amiable, and professional crew, as well as a rapid and easy loan approval process. We are a leading direct hard money and NON-QM lender countrywide. Working with us will help you complete all the little details quickly and more efficiently than working with our rivals.

Is A Stated Income Loan For You?


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