Stated Income Home Loans – Tips and Advice For Borrowers Looking For Loans

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Stated income home loans have gone through some major changes over the past couple of years. You used to be able to get a home loan approved without a good credit rating or even income level. These loans are traditionally known as liar loans because people who applied for them were looking to overstate their income. In the past couple of years many lenders have stopped offering these loans.

They main reason why lenders stopped offering these mortgages is because the default rate was significantly higher than traditional loans. Most of these stated loans attracted borrowers who would lie on their application and overstate their income in the process. The net result was that a lot of lenders ended up losing a lot of money on their mortgages.

There have been many changes to these mortgage offerings. The main change to these loans is that only a few lenders still offer them. If you are interested in applying for a no documentation loan it is important that you find the right lender for your loan. The interest rates on these loans are traditionally higher than most loans. This is because lenders face greater risk when approving these loan applications.

If you are interested in applying for stated income home loans it is important that you have a good credit rating. No longer can you get approval without proving to lenders that you will not default on the loan. You will need to prove your employment details to ensure that you get your loan application approved by lenders.

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