No Doc No Income Verification / Stated Income Mortgage In Texas
The Ultimate Guide to Home Ownership With Stated Income Loans in Texas
Texas Stated income mortgage loans, also called Texas No Doc No Income Verification Mortgage Loans, are types of mortgage loans that take into account the income of the borrower and the loan amount. No income verification loan requires that the borrower’s income be stated on their loan application and throughout their loan. The stated income loan requirement is to ensure that borrowers are not borrowing more than they can afford. This is only applicable to certain borrowers and only to a certain loan amount. Here’s what you need to know about stated income loans in Texas.
What is a Stated Income Loan?
A Texas Stated Income Loan is a type of loan that requires the borrower to provide their annual income from the past two years on their loan application. Most lenders require that income be in writing, so if the borrower doesn’t have their income documented it’s likely not going to pass the lender’s standards for stated income.
Some lenders also have a credit score requirement for stated income loans in Texas. If this is the case, you should expect to see a lower interest rate, since lenders only want to give you the loan if they are confident you can repay it.
Who Qualifies for a Stated Income Loan in Texas?
To qualify for a Texas No Doc No Income Verification Mortgage, or so called stated income loan, you must be a higher-income borrower. People who make more than the median income for their area are generally considered to be higher-income. This is a rough estimate, so if your income is below this figure you may still qualify for a stated income loan.
In order to be considered a higher-income borrower, your income must be stated on your loan application. If you’re borrowing money for an investment property, you can include the income from the property on your loan application. You can also include the income from any sources if you have an agreement to do so in writing. Sources include dividends, business interest, rental income and stocks.
How Much Can You Borrow On A Stated Income Loan?
There is a limit to the amount of money you can borrow on a stated income loan. The amount of your loan depends on your income, the type of loan and lender. Generally, the amount of your loan will be between 80 and 85% of the value of your home. If your home is valued under $200,000, your loan amount may be as little as 80%. The only way to be sure of your loan amount is to speak with a lender such as the experts at LBC Mortgage.
Is a Texas Stated Income Loan Right For You?
If you’re a higher-income borrower who is looking to get a larger loan than a conventional loan, then a stated income loan is a good option for you. This type of loan is only available to higher-income borrowers. If a conventional loan isn’t the right size for you, then you may not be approved for a conventional loan at all. Also, keep in mind that your expected monthly repayment amount will be lower with a stated income loan. This is because the interest rate is generally lower, and you will pay back the loan over a longer period of time.
Does Stated Income Mean No Mortgage Credit Check?
The lender will use your income to determine your credit score. However, the interest rate you are offered will depend on your credit score. This means that your credit score will affect the interest rate you are offered and your interest rate will determine if you are approved for the loan. The only way to be certain of your interest rate is to speak with a lender. The estimated interest rate you are offered will depend on a number of factors, but your income and credit score are two of the most important.
Things To Consider When Approaching a Stated Income Loan
- Your Credit Score – Your credit score is essential to getting approved for any type of mortgage. If you don’t have one, getting a conventional loan may be nearly impossible.
- Your Income – You should be aware of your income and what it means before applying for a loan. Will your income be enough to pay off the loan on time?
- Your Debt – Do you have the debt required to get a loan? For example, do you have a mortgage or car loan you’re trying to pay off?
- Your Loan Purpose – You should also be aware of the purpose of the loan. Is this loan for a down payment or for other reasons, like paying for repairs or investing in property?
Need More Information On Stated Income Loans? We are Here To Help
If you’re interested in a Texas stated income loan, talk with the our licensed Texas mortgage broker. We’ve worked with many different types of borrowers who qualify for a stated income loan, including business owners, buyers who work on commission and more who fall outside the traditional mortgage structure. Contact our knowledgeable experts today!