What is a Stated Income Loan?
Very simply, a stated income loan is one in which a lender does not verify your wage and income information via an IRS W-2 form. Instead, the lender takes your word as it relates to your "stated income". Investment real estate deals are largely evaluated on profitability. If an investment property will generate enough rental income to cover debt, maintenance expenses, insurance, and taxes then your W-2 income is not a significant factor when determining risk.
When is a Stated Income Loan a good option?
- If you are self-employed or are a full-time real estate investor.
- Your debt-to-income ratio is not favorable.
- You have inconsistent income.
- You need quick loan approval.
Vista Commercial Capital can help you with your Stated Income Loan needs
If you have an opportunity that you'd like to review with us where a stated income loan might be a good fit, we'd be happy to set up some time to have a discussion.