Full Documented Loans, Stated Income Loans, 1099 Loans

A full doc loan is one that requires that the borrower present all necessary documents, including income verification to be considered for the home loan. This type of loan usually offers lower rates because it is less risky for the lender. On the other hand, if you are self employed you may not have all of the required documents and should look into a stated income loan.

Stated Income – Temporarily suspended due to our current economic situation.  Hopefully these loans will come back, especially for our self-employed borrowers.  There are however lenders that can do these loans if the property is an investment property.

Stated income home loans allow those who are self employed or do not have documentation of earned wages to state a wage on the mortgage application and qualify for a mortgage based on that stated income. The advantages of a stated income home loans allow those who are self employed or do not have documentation of earned wages to state a wage and qualify for a mortgage based on that stated income. The advantages of a stated income loan are that the borrower does not need to verify income and approval is generally faster than with traditional home loans. The disadvantages of this type of loan are that interest rates and the required down payments are often higher than with traditional home loans.

1099 loans allow a borrower who is an independent contractor and receives 1099 income to use up to 90% of their 1099 income to qualify.  For example, if a person works in the entertainment business and is 1099, but get say 12 1099’s during the year, we can add all of the 1099’s together and use 90% to calculate their income to qualify….

Please reach out to us for more detailed information about these unique products.