Can you still get a Stated Income Loan in California?
To qualify for a home mortgage, most California lenders require that the borrower be able to not only state their income but prove that they have sufficient income to repay the loan. This proof of income usually takes the form of a W-2 or a 1099 (if self a employed contractor). Many Californians are self employed or for other reasons may not show sufficient income necessary for the lender’s full income documentation loan. … and that’s when an experienced lender will recommend a California Stated Income loan.
Frank is a freelance writer and consultant who makes over $190,000 per year. His clients are wealthy individuals and firms across the country. His wife, Sandra has a thriving business that sells decorator items on Ebay. Her income varies but consistently runs between $80-$100,000 per year. Both have excellent credit and have sizable savings and liquid assets.
Frank and Sandra found a lovely home in the Lake Tahoe area but they have a problem… when spoke to a lender about their proposed purchase, the lender asked for their W-2s. The couple explained that as self-employed business owners, they did not receive W-2s. The lender then asked for there 1099s… again, Frank and Sandra could not comply. To an experienced lending professional, the solution, of course, is a California Stated Income loan.
California Stated Income loans come in several different “flavors”:
• STATED INCOME - VERIFIED ASSETS (SIVA) LOAN: The borrowers do not show any proof of income… they simply “state” their income. However, the borrowers must still show some proof of employment or of self-employment and the borrower’s liquid assets must be verified. The lender determines loan approval based on credit score and Loan to Value (down payment). This mortgage program is often used for business owners and independent contractors, or for borrowers who can afford the loan but don’t wish to show proof of their income.
• STATED INCOME - STATED ASSETS (SISA) LOAN: In this loan program, the borrowers do not show any proof of income. The borrowers also do not show proof of their liquid assets. Instead, the borrowers “state” both income and assets. The borrowers usually must show proof of employment or self-employment, often for two years or more. The lender determines loan approval based on the borrower’s stated income and assets and using LTV and credit scores. Again, this mortgage program is often used for business owners and independent contractors, or for borrowers who can afford the loan but don’t wish to show proof of their income.
California stated income loans were extremely common until two years ago… unfortunately, they were often misused and, as a result of the mortgage industry problems of the last few years, they have become much less common.
But in the right circumstances, and when handled correctly, California stated income loans are a powerful tool for folks like Frank and Sandra.
Like any other mortgage loan transaction., California Stated Income loans can be a very powerful financial tool… or a very serious mistake… the difference is often based on the mortgage lender that you select.
And the best mortgage specialist in the Lake Tahoe area is RainTree Financial… just fill out the “Quick Quote” form and you’ll see what we mean…
Can you still get a Stated Income Loan in California?
To qualify for a home mortgage, most California lenders require that the borrower be able to not only state their income but prove that they have sufficient income to repay the loan. This proof of income usually takes the form of a W-2 or a 1099 (if self a employed contractor). Many Californians are self employed or for other reasons may not show sufficient income necessary for the lender’s full income documentation loan. … and that’s when an experienced lender will recommend a California Stated Income loan.
Frank is a freelance writer and consultant who makes over $190,000 per year. His clients are wealthy individuals and firms across the country. His wife, Sandra has a thriving business that sells decorator items on Ebay. Her income varies but consistently runs between $80-$100,000 per year. Both have excellent credit and have sizable savings and liquid assets.
Frank and Sandra found a lovely home in the Lake Tahoe area but they have a problem… when spoke to a lender about their proposed purchase, the lender asked for their W-2s. The couple explained that as self-employed business owners, they did not receive W-2s. The lender then asked for there 1099s… again, Frank and Sandra could not comply. To an experienced lending professional, the solution, of course, is a California Stated Income loan.
California Stated Income loans come in several different “flavors”:
• STATED INCOME - VERIFIED ASSETS (SIVA) LOAN: The borrowers do not show any proof of income… they simply “state” their income. However, the borrowers must still show some proof of employment or of self-employment and the borrower’s liquid assets must be verified. The lender determines loan approval based on credit score and Loan to Value (down payment). This mortgage program is often used for business owners and independent contractors, or for borrowers who can afford the loan but don’t wish to show proof of their income.
• STATED INCOME - STATED ASSETS (SISA) LOAN: In this loan program, the borrowers do not show any proof of income. The borrowers also do not show proof of their liquid assets. Instead, the borrowers “state” both income and assets. The borrowers usually must show proof of employment or self-employment, often for two years or more. The lender determines loan approval based on the borrower’s stated income and assets and using LTV and credit scores. Again, this mortgage program is often used for business owners and independent contractors, or for borrowers who can afford the loan but don’t wish to show proof of their income.
California stated income loans were extremely common until two years ago… unfortunately, they were often misused and, as a result of the mortgage industry problems of the last few years, they have become much less common.
But in the right circumstances, and when handled correctly, California stated income loans are a powerful tool for folks like Frank and Sandra.
Like any other mortgage loan transaction., California Stated Income loans can be a very powerful financial tool… or a very serious mistake… the difference is often based on the mortgage lender that you select.
And the best mortgage specialist in the Lake Tahoe area is RainTree Financial… just fill out the “Quick Quote” form and you’ll see what we mean…