Investing in Real Estate? Here’s Why You Can Benefit More From a Stated Income Loan

A stated income loan can be a great alternative to traditional lending, and in some cases it may be a better option to get the financing you need, quickly and hassle free. Whether you’re a landlord with an investment or rental property, or you’re having trouble applying for a mortgage loan, a stated income loan may be an option that can help you access the money you need for repairs, a down payment and much more.

You Don’t Make Enough Money to Qualify for a Traditional Mortgage

If you’ve tried to apply for a mortgage loan but were told you didn’t qualify because you didn’t make enough money, you may feel like you have nowhere to turn.

Fortunately, there are still ways to get approved for a home loan. Most notably, loan programs that use alternative income verification are rising in popularity. These types of loans are also known as “no income loans” and use other types of documentation beyond things like your W-2. They may use a verification of employment letter from your employer, a letter from your CPA or your past bank statements. In doing so, this also makes it easier for many people to qualify for a mortgage.

You Want to Start Investing in Real Estate but Don’t Have Enough Provable Income 

Just like when applying for a mortgage for yourself, you can also use no income loans to help you get the funding you need to start investing in real estate. These no income loans look at the gross rental income a specific property will earn while on the market, allowing you to build your portfolio based solely on the property’s earning potential and not your specific income situation.

You Already Have an Investment Property But It’s In Need of Repairs or Renovations

Landlords who have rental properties or a rental home in need of renovation can use stated income loans as a way to get the money they need for repairs or renovations to their rental properties without needing to prove their income by way of previous tax returns or a 4506T form. This happens by way of a cash-out refinance which can then get you the money you need to make repairs to the property.

You Can Use the Money to Pay Off Credit Cards or Other Debt

If you have an investment or rental property, you may not realize it, but you can refinance that property and use the cash to pay off personal debt, such as credit card bills. Oftentimes, property owners don’t realize that they owe little or nothing on their mortgage but still have other debts. A cash out refinance with a no income loan can be a great way to pay off these bills and lower their overall monthly expenses.

Get Money to Pay for Unexpected Emergencies

A sudden family or personal emergency can drain your savings in the blink of an eye. When you need money quickly, you can easily find favorable rates on stated income loans and can often close on them within two weeks. This can help give you peace of mind in times where unexpected family or medical emergencies can crop up without warning.

Stated income loans have gone well beyond the days of subprime mortgages. Today’s lower rates and quick closings mean you can have money in hand faster than with a traditional mortgage.

Whether you’re looking to apply for a mortgage, purchase or refinance a rental property, make repairs or renovations on an apartment complex, or you need quick cash for an emergency, no income loans can be a fast and easy way to secure the funding you need without slogging through seemingly endless paperwork and hours of back-and-forth with the bank.

Plus, stated income loans have high loan limits - several million dollars in some cases. So even if you think a property is financially out of reach from the bank’s point of view, you may be able to quality through a no income verification loan. In fact, getting approved for this alternative financing can happen in as little as 72 hours, with pre-approval as quick as five minutes -- try getting service like that from your bank!

You don’t even need to have your work history verified in order to get approved for a stated income loan. This makes it a great option for people who primarily earn their income through investments, freelancing or other service jobs where income can be difficult to prove.

Don’t give up on your real estate investment dreams! Whether you’re a landlord looking to refinance in order to make repairs or you need some extra cash to pay down debts, a stated income loan could be the financing solution you’ve been waiting for. Call California stated income loan office today to learn more!

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