Stated Income Loan in Florida
What Does A Stated Income Loan In Florida Have To Offer A Self-Employed Borrower?
If you are self-employed, then you should Call Us or fill out our Custom Quote Form to find out about the available options a stated income loan has to offer you. A Stated income self-employed loan are considered a difficult loan to get depending on what you are trying to do with it. It is because a stated income loan in Florida allow borrowers to simply state their monthly income on a mortgage application instead of verifying the actual amount by presenting their pay stubs or their tax returns. This simplified method originally intended for self-employed borrowers with complicated tax schedules, but has recently become more widespread, often because borrowers find it that much easier to qualify for a loan by stating their income.
Our NSH Mortgage lender is the right person to help you get the best stated income loan in Florida possible. If you are a self-employed borrower then you will have your own set of issues when getting a mortgage. We are Florida’s best stated income mortgage lender and we will help you in obtaining your dream home.
Call us today and one of our mortgage professionals will be able to help you set a budget. Plus figure out your income and expenses, and help you apply for a loan within your means without over extending yourself. Since you have already started a successful business, take it to the next step and move your family into a wonderful home. Here is our monthly payment mortgage calculator to help figure out how much you will be paying.
New Rules in Effect for Self-Employed Mortgage Loans Which Is Making It Become Easier To Obtain
With 14 million self-employed borrowers nationwide, it is becoming a lot easier to get approved for a new mortgage. Most recently, new loan guidelines have been released relating to self-employment income loans.Some of the highlights include a documentation reduction from two years of federal income tax returns to one.
Plus, in certain moments it has new income calculation for business owners with little or no history of distributions. The new loan guidelines are also more friendly towards moonlighters. Moonlighters are borrowers with self-employment income from a secondary, non-salaried business and are no longer required to show proof of income even if they are qualified, this is based on the income from their salaried job.
Which is always better today since mortgage rates remain stronger by four percent. So now it has become the most excellent time to start shopping for a mortgage now than ever.
Getting Approved For A Mortgage When You Are Self-Employed
When you are buying a home, or doing a refinance loan, there are specific steps to being approved for a mortgage. First, you need to apply for your stated income loan, which you can do so in-person, online, or by telephone. These applications will require information regarding your annual income, your savings, and your debts. As well as your employment history and a record of where you have lived.
Once completed, your application is now given to a bank employee called an underwriter. Your underwriter will review the information provided, making requests for clarifications, when needed. And will make documentation which proves the information you have provided. For example, if your bank account shows an unusual, large deposit made within the last 60 days, your underwriter may ask for verification of this deposits’ source. You maybe asked to provide other documentation at the underwriter’s discretion. The underwriter’s task is to verify that your loan meets the minimum requirements set forth by the bank.
It is only after underwriting is completed that the loan can be issued a “Clear-to-Close”. Meaning that your application, now indeed meets the bank’s requirements. However, the underwriting process may differ from applicant-to-applicant and loan-to-loan types.
The documentation required by an underwriter is going to be different for every mortgage borrower. For self-employed borrowers, these documentation requirements can prove to be difficult. Besides the typical requests for bank statements and credit reports, self-employed borrowers must provide their federal income tax returns and give additional documentation which presents the vitality of their respective businesses.
Recently, though self-employed borrowers have been able to catch a break. Since lenders recently reduced the amount of paperwork that many self-employed borrowers needed to produce. For some self-employed borrowers with second jobs, now can get their paperwork requirements waived altogether.
Information on Mortgages For Self-Employed Borrowers
Since late-August 2015, mortgage companies have engaged with a loose set of guidelines for the nation’s self-employed borrowers.
This policy updated three areas:
- Self-employed borrowers with no history of taking paychecks.
- Self-employed borrowers who do not have the two years of federal tax returns to support their business.
- Salaried borrowers with a second job, since the income not required to qualify.
For self-employed borrowers with a history of paying themselves. New mortgage rates guidelines express that the borrower must only have access to the business income. This will show businesses, that have the suitable requirement on how to maintain their income withdrawals. In general, to prove you have access to business income, a letter of incorporation or K-1 filing which states your ownership percentage will suffice. Borrowers without two years of federal tax returns, the policies have relaxed to allow an one year of returns. Yet those returns will need to show at least 12 months of self-employment income. And provide a cash flow analysis of the company’s expenses.
However, it is the third option that seems more welcoming to self-employed mortgage borrowers. Under the new regulations, borrowers qualifying for a mortgage will be using the incomes of their salaried jobs. This arrangement applies to borrowers living off retirement income, social security income, pension payments, and dividends as well.
If your mortgage application displays sufficient household income without self-employment finances. These requirements are offered by your federal income or corporate tax returns since it relates to your self-employment which is now waived through underwriting. Please take note that these rules apply to conventional loans only. Plus some of these guidelines may influence FHA loans and VA loans differently. So contact us today to see if you can qualify for a stated income loan in Florida.