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How much higher of an interest rate do you have to pay for a stated income mortgage?
Wiki User
∙ 19y ago
You can get hit anywhere from .500 to 2.000 points based on the type of mortgage you are getting and your LTV. However, these are points. Points are not Interest Rates. I have attached an example of what points verses interest rates and lock periods look like for Loan Officers. If the Lender charges you 1.000 point on a 25 Day Lock, your rate will move from 6% to 6.250%. This is just an example. CONV 25-30 YR FIXED* RATE 25 DAY 45 DAY 5.625% 1.375% 1.625% 5.750% 0.750% 1.000% 5.875% 0.125% 0.375% 6.000% -0.500% -0.250% 6.125% -1.000% -0.750% 6.250% -1.500% -1.250% 6.375% -2.000% -1.750% 6.500% -2.375% -2.125% 6.625% -2.750% -2.500%
Wiki User
∙ 19y ago
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Where can one get a stated income mortgage refinance?
Most mortgages these days are stated income mortgages. Most if not all banks will have this sort of mortgage. Popular banks to try would be Yorkshire Bank, Natwest and Royal Bank of Scotland.
What are stated income loans?
Among the information collected at the time one applies for a mortgage, one must disclose his annual earnings (usually for two years). The dollar amount is stated on the application and is proven by documents required by the lender. W2's, 1099's and pay stubs name a few and the forms requested varies by lender and situation. This is called Full Income Verification. At times, one is not able to supply the documents needed to prove the income stated on the application. In a case as such, income cannot be verified. Other measures, like checking with the employer, are taken to ensure that the borrower earns sufficient income to support the mortgage payments. Assuming the information is correct, the lender will then qualify the borrower. This is called a Stated Income Loan. Understandably, when going stated, one cannot expect the interest rate to be the same as if one would be going full. The lender needs to make up for the risk of default by charging a higher interest rate; Income has only been stated, not verified.
If you have good credit but not high income and you are interested in purchasing for investment purposes what are your chances of being approved for a loan?
Pretty good if your credit score is high enough. You possibly could qualify for a "Stated Income" loan. On investment property for a stated income loan you normally would have to have a 10% down payment. You can get into a mortgage loan with a lesser down payment going this route, but, you'll definitely be paying for it in your interest rate.
Can a couple use one person's credit score but both incomes to secure a mortgage?
NO but if one persons score is over 600 you could do a stated income loan and get a house that way the interest rate would be slightly higher than a conventional loan but it's better than throwing away all your money renting each month and getting nowhere.
How does a self certification remortgage work?
Self certification remortgages allow you to certify your income stated on your mortgage without actually having to provide proof of the income. However, you will have to provide proof that some income is being earned.
Exactly what is a Stated Income mortgage loan and is it riskier than other types?
Stated income basically means that you are not providing proof of your income but you are stating it. The risk is that the borrower may not have stable income and the lender may charge higher interest rates.
Who is elegible for a stated income mortgage?
Eligibility for a 'stated income mortgage' now requires documented proof of income, which, for the self employed, must include at least two tax returns.
What is a state income mortgage loan?
A stated income mortgage loan is a loan where a borriwer is not required to verify there income. These loans were very popular and common before the recent mortgage crisis.
Can interest be added to late rent if not stated in lease?
No interest should only be charged if you are in a mortgage.
Is a stated income mortgage loan a bad way to get a loan?
A stated income mortgage loan is not a bad way to get a loan. With less paperwork and verification involved, stated income loans can be a bit faster than a traditional mortgage. When you are self-employed, you will often find it difficult to locate a lender that wants to work with you. Lenders look at self-employed individuals as a bigger risk because they do not always have a steady income. With stated income lenders, they will simply take you at your word regardless of what your work situation is.
What lenders do "stated income" mortgage loans for self employed borrowers?
Stated income loans, often called No Doc loans are harder to come by since the mortgage crisis. You might check with Great Western Mortgage to see if they still offer this type of loan.
Where can one get a stated income mortgage refinance?
Most mortgages these days are stated income mortgages. Most if not all banks will have this sort of mortgage. Popular banks to try would be Yorkshire Bank, Natwest and Royal Bank of Scotland.
What are stated income loans?
Among the information collected at the time one applies for a mortgage, one must disclose his annual earnings (usually for two years). The dollar amount is stated on the application and is proven by documents required by the lender. W2's, 1099's and pay stubs name a few and the forms requested varies by lender and situation. This is called Full Income Verification. At times, one is not able to supply the documents needed to prove the income stated on the application. In a case as such, income cannot be verified. Other measures, like checking with the employer, are taken to ensure that the borrower earns sufficient income to support the mortgage payments. Assuming the information is correct, the lender will then qualify the borrower. This is called a Stated Income Loan. Understandably, when going stated, one cannot expect the interest rate to be the same as if one would be going full. The lender needs to make up for the risk of default by charging a higher interest rate; Income has only been stated, not verified.
If you have good credit but not high income and you are interested in purchasing for investment purposes what are your chances of being approved for a loan?
Pretty good if your credit score is high enough. You possibly could qualify for a "Stated Income" loan. On investment property for a stated income loan you normally would have to have a 10% down payment. You can get into a mortgage loan with a lesser down payment going this route, but, you'll definitely be paying for it in your interest rate.
Can a couple use one person's credit score but both incomes to secure a mortgage?
NO but if one persons score is over 600 you could do a stated income loan and get a house that way the interest rate would be slightly higher than a conventional loan but it's better than throwing away all your money renting each month and getting nowhere.
Can a person still do a Stated Income Mortgage Loan?
Yes. They are complicated. Read more here http://www.novinite.com/finart/studentloans/stated_income_mortgage_loan.html
How does a self certification remortgage work?
Self certification remortgages allow you to certify your income stated on your mortgage without actually having to provide proof of the income. However, you will have to provide proof that some income is being earned.
