With a stated income loan, we can offer financing for you even if you can’t send us your recent tax returns. We have the lowest no-doc rates in Texas. These private money loans should fund if you can provide at least 25% down for purchase. A refinance will need at least 35% equity to move forward with approval. Our stated income loans don’t require you to provide W-2 forms or other types of paperwork. You’re simply going to “state” your income and we will do all we can to get you approved. These loans are provided in Texas for investment properties and owner-occupied dwellings.
As we all know, stated income loans aren’t for everyone and they have a long history in the State of Texas. This type of mortgage financing become popular during the 90’s housing boom. Many borrowers were using this form of financing to get approved for loans that didn’t fit their budget or needs. Then came the mortgage meltdown and all types of borrow declared income loans went out the window. Since the recession ended we’ve begun to see an uptick in approvals for more stringent stated income loan offerings. The way things are now doesn’t really compare to the wild west environment of how it was years ago. There are now increases to regulations brought on by the CFPB and other federal regulatory bodies. Not to mention state and local rules that have recently popped up in metro areas like Houston and San Antonio. These new rules have brought more stability to the private money lending industry when it comes to stated income lending in Texas. Let’s break down a few different unique financing options.
Even though most people think of stated income loans as no docs required, there are still variations and differences in how you get approved. Also, most hard money lenders will need you to disclose different assets that you can bring to the table. Most banks and mortgage lenders will not even talk to you if you as for a stated income loan, but they’re becoming more common with private money lending companies in Texas. Another factor to consider, even though you’re stating your income you still need to disclose and have your employment and credit verified in most cases. Your employer will be called to verify certain details and most companies will do a standard check of your credit to review past issues. Some banks will also need an IRS Form 4506 which verifies your past few tax submissions. Typically the IRS will furnish your tax return information as well as W-2 and 1099 documents. Most private money lenders will stick to the basic underwriting requirements but you’re going to have restrictions on down payments with a higher interest rate.