90% Stated Income Mortgages
“You Can Secure A Stated Income Mortgage For Up To 90% Of The Purchase Price”
The stated income mortgage market is continuing to evolve with more lenders breathing new life in this lending space which for the most part had been abandoned by several lenders over the last year or so, or at least the available programs have failed to resemble what was previously available to self employed individuals.
At the present time there are some solid and continuing to develop products in the market with the best in class providing up to 90% loan to value on new home purchases.
You can get up to 65% loan to value without mortgage insurance and anything over 65% to the 90% ceiling will require mortgage insurance.
Both fixed and variable rate options exist as well to provide greater flexibility to each borrower.
The main qualifying criteria are that you need to be able to prove that you’ve been in business for at least two years, that you have very good credit, and the cash you’re putting in for the down payment is from your own resources.
There is some greater flexibility today in the documentation lenders will accept to support your stated income. The key is that there must be a certain amount of reasonableness in the income declared and the means to which it can be supported. Gone are the days when the lender will take your word for it which only makes sense in terms of anyone making a proper lending decision.
One of the bigger challenges to some business for self individuals is the maximum loan amount they can secure.
For larger urban centers such Toronto or Vancouver where real estate pricing can be fairly high, some of these programs will not be able to provide enough financing to fit your requirements even if you could otherwise satisfy all their other lending and funding requirements.
The upper limits to stated income mortgages are also likely to increase provided that lenders experience a low occurrence loss, default, and payment arrears.
One of the real keys to getting the best stated income mortgage deal available to you is to put forward a very strong and complete information package to targeted lenders. This increases the possibility of greater flexibility being provided on acceptance of documents that you have available to support your earnings.
In order to put together a solid application package, it can make a great deal of sense to work with an experienced mortgage broker who can not only help you put everything together, but also identify the self employed mortgage programs in the market that best fit your particular circumstances and requirements.
There definitely is a certain amount of art and science to stated income mortgages, so being able to draw on some know how and experience can make a big difference.
Click Here To Speak Directly To Toronto Mortgage Broker Joe Walsh For A Free Assessment Of Your Stated Income Mortgage Options
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel