FAQ
Welcome to our Knowledge base FAQ page.
This page has been created to provide answers to frequent asked questions. If you have a question that is not here, please feel free in contacting us and we will be happy to answer any questions.
Stated Income
What does it mean to have stated income on loan?
A SISA loan, or stated income/stated asset loan, allows you to state both your monthly gross income and your assets. In this case, both items are simply stated, and the bank or lender will not ask you to verify the information.
Can a self employed person get a stated income loan?
However, stated income loans require no income documentation nor tax returns for self-employed borrowers. Since Dodd-Frank, it is now illegal for any consumer to get this loan type for an owner-occupant property.
When did stated income loans stop being issued?
Lenders just needed a borrower’s stated income — hence the name “stated income” loans. Unfortunately, these risky loan types contributed to the 2008 housing market crash, and banks stopped issuing stated income loans as a result.
Where can I get a mortgage with stated income?
If you would like some help finding a mortgage lender, contact us, and we will match you with a lender in your location. The mortgage lenders featured above are 7 of the top stated income / bank statement lenders. If you would like some assistance finding a mortgage lender, we would be glad to help.
12 Month Statement
How many months of bank statements do you need to get a mortgage?
While most lenders require a minimum of 12 months of bank statements, some lenders may require less. Although not always required, if applicants can provide 24 months of statements, they may qualify for better rates and terms. Most lenders require 12 months worth of bank statements.
Why do lenders want to see your bank statements?
Lenders also take a look at your statements because it helps them avoid fraud and lessens their risk. Most lenders ask to see at least two months’ worth of statements before they issue you a loan. Lenders use a process called “underwriting” to verify your income.
How to qualify for a bank statement loan?
With a bank statement loan you are going to qualify based upon the 12-24 month bank deposits (depending upon the lender) into your personal and/or business accounts. The bank statement lenders want to see a consistent flow of money sufficient to qualify you for the bank statement mortgage.
Which is the best bank statement loan program?
Below are 5 of the best mortgage lenders that offer bank statement loans: RGC Capital offers a 12 month bank statement program that will allow you to use 100% of your personal account deposits, and 50% of your business account deposits. Loan amounts are available up to $3,000,000.
Private Money
How does private money lending work for real estate?
Private money lending, as the name implies, means borrowing money from an individual investor. Real estate investors use private lenders to finance deals that either won’t qualify for a traditional loan or can’t wait the usual 30 days or so that a conventional mortgage loan needs for approval.
Can a private investor give you a loan?
Conventional financial institutions often refuse to grant mortgage loans for properties that have been vandalized or seriously damaged somehow. On the other hand, private investors see the potential in a property that can be purchased cheaply, fixed for a reasonable price, and then resold for a tidy profit.
What's the difference between hard money lending and private money lending?
Hard money lending is something that lives between private money lending and conventional bank financing. Though hard money lending doesn’t require the usual hoops to jump through that conventional financing does, hard money lenders are semi-institutional and do have their own set of established criteria.
Fix and Flip
Is it easy to get a fix and Flip loan?
Unfortunately doing a fix and flip is not that easy. This article on fix and flip loans is mean to inform borrowers and mortgage brokers about the true risks and possible rewards of flipping a house. There are many misnomers about fix and flip loans.
What is the interest rate on a fix and Flip loan?
Typically, a hard money fix and flip loan will finance between 80% to 85% of the overall project cost, which means the investor will have to cover the remaining 15%-20% up front. Interest rates can vary but are usually around 8% to 12% with origination points running between 0% to 3%.
Is it worth it to invest in fix and flip?
In reality, however very few people are successful with the fix-and-flip model, as there are numerous conditions that must be ideal for a fix-and-flip investment to be worthwhile.