Stated Income Mortgage in California, Colorado, and Idaho
Fully documented loans are appropriate for some individuals, but not all people. For this reason, LifeSource Mortgage offers No Doc Mortgages (aka Stated Income Mortgage or Alt Doc home loans) for homeowners or home buyers in California, Colorado, and Idaho.
Why a Stated Income or No Doc Mortgage?
The average homeowner works for a company and gets paystubs and w-2’s to help them document their income. Sometimes self employed borrowers ARE able to qualify with their tax returns. However, not every self employed person can qualify with their tax returns. it’s not necessarily because they don’t have enough income. Often times, it’s because they have a lot of legitimate tax writes offs. These write offs are great when It comes time to pay your taxes. However, it often times can make folks ineligible for a conventional type loan (referring to loans backed by Freddie Mac/Fannie Mae, FHA, VA, USDA, or traditional jumbo loans).
What is a Stated Income or Alt Doc Mortgage
Stated Income loans are a type of mortgage that does not rely on traditional documentation. The traditional documentation is typically either paystubs and w-2’s and / or tax returns. With most conventional type home loans, bank statements are required in addition to the paystubs etc., but they are not used for income documentation. It’s to supplement the paystubs and w-2’s and / or tax returns.
Want more info about a alt / no / stated income mortgage? Call us at (949) 492-2252 x704 or Email us at; [email protected].
Types of No Doc, Stated Income, or Alternative Doc Mortgage Loans
At one point in time, there were true No Doc loans. These loans basically just had credit and property requirements. You didn’t have to show bank statements, tax returns, paystubs, w-2’s, 1099’s. Literally NOTHING. You didn’t even need a job or business. That all changed around 2008 when the market crashed big time!
LifeSource Mortgage operates as a broker. In plain English, that means we’re not limited by one set of guidelines. For that reason, brokers are better! We work with MANY lenders and have many no doc, alt doc, and stated income or bank statement loan options.
Some types of Non QM or stated income mortgage loans available include:
- 3 months bank statements for income
- 12 months bank statements for income
- 24 months bank statements for income
- 1099 only
- No ratio alt doc loans
- DSCR (qualify based on rent. DSCR stands for Debt-Service Coverage Ratio)
- Asset Depreciation
- Full Documentation (credit event like a 30 day late, etc.)
- ATR-IN-FULL (no job needed if you have enough liquid assets to cover the loan amount)
What Are the Credit Score Requirements for these Low Doc / No Doc / Stated Income Loans?
This is a loaded question. As a premier California mortgage broker, we’re partnered with A LOT of lenders. Our job is to shop for you and find you the best loan you qualify to get. Every lender has different score requirements. Beyond that, they all have different rules in terms of the LTV or percentage of the appraised value they’ll lend. There’s also different rules depending on the property type, etc.
With that said, below are just a few examples of what some of our lenders have to offer. If you don’t see YOUR exact scenario, please reach out to us to see if we have a program for you. Also, guidelines change periodically, so please just connect with us.
Want more info about a alt / no / stated income mortgage? Call us at (949) 492-2252 x704 or Email us at; [email protected].
Stated Income Mortgage Example #1 (DSCR)
One of our DSCR Alt Doc Loans has a credit score point of entry at just 600. Here’s a quick summary at a glance:
- Lend up to 80% of appraised value or purchase price
- Minimum FICO as low as 600
- No debt to income ratios since it’s based on rent / dscr
- Max LTV is based on DSCR and whether it’s less than 1.00 or greater than 1.00
- Loan amounts up to $3,500,000
- No DSCR Requirements when the LTV is 75% or lower (also credit score requirement)
Non QM Mortgage Example #2
Here is another example from the same lender. It’s not a no doc or stated income loan, BUT it does allow credit scores as low as 580 and one 30 day mortgage late in the last 12 months. While it is a fully documented loan, there is an option for reduced documentation to the tune of just one year of tax returns.
Here’s a Non QM quick summary at a glance:
- Max LTV of 90%
- Minimum FICO of 580
- Loan Amounts to $3 M
- Up to 50% DTI
This lender has quite a few other options as well including but not limited to a program for Foreign Nationals with a credit score of 680 plus, Interest Only options, and an ITIN mortgage.
Stated Income Example #3 (1099 Mortgage Program)
With conventional loans, 1099 employees are treated as self employed borrowers. Hence, the norm there would be to submit two years worth of business and personal tax returns (sometimes just one year for some programs). So, if this person had a lot of writes offs, it could make them ineligible for conventional home loans. This type of stated income mortgage allows you to skip the tax return part and submit your 1099’s instead.
Here’s a quick summary of the 1099 Stated Income Mortgage at a glance:
- Credit scores as low as 620
- 90% LTV – you can borrow up to 90% of the appraised value or purchase price (dependent on credit scores, etc.)
- Blended income OK (for example a married couple and one spouse has w-2 income and the other has 1099 income)
- Qualify using either most recent one or two years 1099
- Tax returns not required
- 55% DTI
- Interest only options available
- Loan Amounts Up to $3,000,000
No Documentation Mortgage Loan Example #4 (Express DSCR)
This is probably the closest thing there is to a No Doc Loan in the 2020’s. You’re not stating income. It’s based on the DSCR. This one allows you to use cash out toward reserve requirements AND doesn’t have any maximum cash out rules that you see with many DSCR mortgage loan options.
Want more info about a alt / no / stated income mortgage? Call us at (949) 492-2252 x704 or Email us at; [email protected].
Here’s a quick summary of the Alt Doc Express DSCR Mortgage:
- We may be able to offer this in other states besides California, Colorado, and Idaho
- Loan Amounts up to $3 Million
- Cash Out can be Used for reserves
- Min Fico 620
- Vacant Properties OK (restrictions apply)
- No Max Cash in Hand
- Non Owner Occupied Properties Only
- DSCR needs to be above 1.00
Low Documentation Mortgage Loan Example #5 (Express No Ratio)
This option is similar to option number four and it’s with the same lender / investor. However, what sets it apart is that the DSCR coverage ratio can be 0.00.
Quick summary of the Alt Doc Express No Ratio Mortgage:
- 75% LTV
- DSCR factor can be 0.00
- Loan Amounts up to $2.5 million
- Min Fico 620
- Gift Funds OK
- No Reserves required for other financed properties
- Qualify on the IO payment
Many lenders that we broker with have similar programs, BUT each has slightly different guidelines, rules, and appetite. The next example is one of the stated income loans. Many of today’s true stated income loans allow you to skip the tax return part (typically meant for self employed borrowers). Quite a few of our lenders offer stated / bank statement mortgages, but this one in particular allows it even if you’ve had a mortgage late in the last year.
Stated Income Mortgage Example #6 (Bank Statement Loan Called SmartSelf)
Like we mentioned above, this option actually allows for 1 mortgage late payment in the last year.
Quick summary of this bank statement type stated income mortgage:
- For borrowers who can support their self-employed income with bank statements
- Income is calculated by averaging deposits shown on bank statements
- Up to $3 million loan amounts
- 12 or 24 months of statements required options
- One late mortgage payment over the last 12 months is permissable
- 30-year fixed-rate and 30-year interest-only fixed rate terms available
- 5/6, 7/6, 10/6 ARMs with interest-only options
Again, since we operate as a mortgage broker, we’re not bound by one set of rules. We encourage you to reach out to us with your loan scenario. We shop for you, which is what makes mortgage brokers BETTER!
Want more info about a alt / no / stated income mortgage? Call us at (949) 492-2252 x704 or Email us at; [email protected].
