Stated Income Mortgage Refinance
When some consumers head to a bank to initiate a refinance, they may be met with some difficult questions that they did not anticipate needing to answer. Some of those mortgage or refinance related questions might include something like: What proof do you have that states how much money you earned last year? Well in some cases it’s not as easy as brandishing a W2 form.
For those consumers, the option may be to utilize a stated income mortgage refinance. Basically, this type of refinance allows a consumer to state on the loan application their income and assets without verification by the lender. However, the source of the income is always verified – meaning there needs to be proof of a job or some form of income in order for the bank to justify the loan.
“Going stated” as some refer to it mostly falls upon those borrowers who have their own business or work as a consultant. Typically, those borrowers who have full time jobs and work for a company or business that issues W2 forms will not need to use a stated income mortgage refinance.