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Stated and No Documentation Income
There are borrowers who earn a very good income
to qualify them for a loan but is difficult to document.
If you are working in a type if business where you
may receive a minimum wage but the majority of your income comes from tips, such as
bartender, waitress or hair dresser. A stated program may best suit you.
The income that is stated must be realistic in today's
market for your line of work. It is also possible to qualify with a limited doc program
documenting cash flow using deposits showing on 12 months of personal bank statements.
Lenders will be looking for consistency in monthly deposits
than average them. It is important that you have worked in the same line of business for
at least 2 years to qualify.
Borrowers who earn commission, and income has not been
consistent on 1040's and 1099's over a two year period often use the stated program.
In No Documentation programs, employment, income and assets are not documented at all.
Remember the more documentation you can provide and qualify,
will be the best interest rates lenders will make available to you.
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