Stated income home loans, to put it succinctly, are one of the reasons the financial crises of 2008 happened in the first place. On the run up to the crash, you could basically walk into a lender’s office, state that you made a six figure income, and get a home loan based on that “stated income” without providing written documentation for your income. Sounds crazy, huh?
Are Stated Income Home Loans Back?
Yes and no. You’ll never find conventional banks or mortgage companies that provide stated income home loans, and I think we can all agree that’s a good thing! Ever since 2008, the amount of paperwork you have to sign for a home loan can seem a bit overwhelming, and for good reason. The government and the lending industry wants to make sure we don’t all find ourselves in the same predicament as we did back then.
You might find a hard money lender who provides stated income home loans. A hard money lender works with private investors’ money to provide home loans to people who might not otherwise have been able to qualify for a loan. However, getting a loan from a hard money lender comes at a cost – at minimum, usually a much higher interest rate than the prevailing market rates.
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