What is the difference between a Stated Income and Full Documentation Loan?

 

Stated Income loans are mostly for self employed individuals, or those who would like to avoid gathering personal financial information. These kind of loans are generally structured at a higher rate and/or higher fees, however minimum disclosures and verifications are required. In addition, some lenders have less strict requirements concerning DSCR on these type of loan transactions.

 

Full Documentation loans are a little bit more work intensive and requires full disclosures of your financial ability for repayment. Nevertheless, the benefits of providing more detailed documentation and verifications are reflected throughout the pricing of the loan, rates and terms. 

 

 

                                    FULL DOCUMENTATION loan:


1003 Application


Credit Report


Rent Roll and copies of all rental/lease agreements


YTD Operating Statement for subject property


Last 2 years Operating Statements for subject property


Last 2 years Signed Personal Tax Returns


3 months bank statements


Schedule of Real Estate Owned


Personal Financial Statement


Appraisal if available or pictures of the property


Purchase Agreement (if applicable)


Current Mortgage Statement (if refinance)


2 years Business Tax Returns (if applicable)


YTD Business Financial Statements (if applicable)


2 years Business Financial Statements (if applicable)

* (Additional documentation may be required on a case by case scenario)


       STATED INCOME loan:

 

1003 Application


Credit Report


Rent Roll and copies of all rental/lease agreements


YTD Operating Statement for subject property


Last 2 years Operating Statements for subject property


Appraisal if available or pictures of the property


Purchase Agreement


Or Mortgage Statement if refinance

* (Additional documentation may be required on a case by case scenario)