Frequently Asked Questions
1) What is a stated income loan?
A stated income loan is a loan where no financials are gathered, business or personal, and approval is based on the credit score of the borrower, information on a residential 1003 loan application and if borrower is financing investment properties, information on rent rolls and collected leases.
2) Are all stated income loans the same?
No. There are Stated Income Verified Asset (SIVA) loans, Stated Income Stated Asset (SISA) loans, No Income Verified Asset (NIVA) loans and No Income No Asset (NINA) loans. The loans for these programs are Stated Income Verified Asset (SIVA) loans where after approval, you will document your assets with bank statements.
3) Are you the lender?
No, we broker loans to lenders that fund stated income loans
4) How long will it take to get an approval?
Many approvals are within 48 hours, depending on the complexity of the transaction.
5) How long will it take to close our loan?
Most deals close within 15-45 days from submission.
6) Are there any upfront fees?
Third party reports will be paid after approval letter to either the lender or or COD to the company doing the third party report (i.e. appraisal, title and environmental if applicable). We do not collect upfront fees on stated income loans.
7) Can you do cash-outs?
Yes, cash-out is available for borrowers that qualify. A detailed use of funds will be required at the time of submission.
8) Are stated income loans available in all states?
No, depending on the program some states do not have stated income available. Currently those states are ND, SD, MI.
9) What documentation is necessary?
A one page lender application, a residential 1003 app and a credit report that the borrower may pull. If this is an investment property, a rent roll and copies of leases will be required.
10) What type credit report do I need to pull?
A report that has all three credit agencies and three credit scores.
11) Are all property types eligible?
No. Certain types such as gas stations, hotels, churches, among others are not eligible. Check as the eligible asset types change on occasion.
12) Do you require personal tax returns?
No. Stated income financing does not require personal tax returns.
13) Do you require business (1120, 1120S, 1065, Schedule C, etc) tax returns?
No. Stated income financing does not require business tax returns.
14) Do you require other financials such as profit/loss statements, accounts payable, accounts receivable?
No. Stated income financing does not require these financials.
15) Can I get a stated income loan if I’ve had a personal or business bankruptcy?
You may be eligible for stated income financing if the bankruptcy was longer than 2 years ago.
16) Can I get stated income financing if I’ve had repossessions?
You may be eligible for stated income financing if the repossession was longer than 2 years ago.
17) Can I get stated income financing if I’ve had a foreclosure?
You may be eligible for stated income financing if the foreclosure was longer than 2 years ago.
18) Can I get stated income financing If I’ve had a short sale?
You may be eligible for stated income financing if the short sale was longer than 2 years ago.
19) Can I get stated income financing if I’ve had a loan modification on my home or commercial property?
You may be eligible for stated income financing if the loan modification was longer than 2 years ago.
20) Can I get stated income financing if I’ve had a charge off or collections on my credit report?
Charge offs and collections are not allowed in the prior twelve (12) month period.
21) Can I get stated income financing if I’ve had a late pay on my mortgage?
Mortgage must be current. Mortgage must have been rated for at least twelve (12 ) months.
22) How many creditors do I need to show on my credit report?
You need to have at least 5 active trade lines.
23) Will the lender personally contact me about my loan?
Yes. The underwriter will contact you to make sure everything is clear about the purpose, amount and term on your loan.
24) Can closing costs be rolled into my loan for my refinance?
Typically closing costs can be rolled into the loan amount upon underwriter approval.
25) Will the lender escrow taxes & insurance?
Taxes & insurance will be escrowed. Exceptions allowed on a case by case basis.
26) How old can the documentation be?
Credit documents cannot be more than 90 days old. Appraisals must be less than 60 days old at time of closing.
27) Do we have to have an environmental done on our property?
Not necessarily. All loans must have an environmental questionnaire completed. Some may require a Phase I environmental. All loans will require the payment of an Environmental Processing Fee.
30) Do I have to personally guarantee a commercial loan?
Personal guarantees are required on all loans.
31) Can I live in a small town and get a stated income loan?
Underwriting requires that a property be in a town with 25,000 residents or greater.
32) Can you do a stated income loan as a second?
No. First liens on primary collateral.
33) How does your company get paid?
We are paid by origination points and our fees are paid at the closing table. We do not charge any other fees. We do not charge upfront fees, i.e. retainer, due diligence fees or deposits. The only fees paid are to the lender for third party reports.