In a Stated Documentation Loan, you will not have to verify both your Income and your Assets. The most common type of Stated Documentation is refered to as SIVA (Stated Income, Verified Assets) in which you will only State your Income amount, but Verify your Assets. The other variation of Stated Documentation is a SISA (Stated Income, Stated Assets)

It is important to note that stated documentation loans are not intended for borrowers to obtain loans they cannot afford. Stated loans are being scrutinized more closely to make sure borrowers are not given loans they cannot possibly repay, but rather made to borrowers who have trouble documenting their true income.

Stated documentation loans are good for those who are self-employed and also for real estate investors. On a stated income loan you are simply stating how much income you make versus documenting your income and verifying it. Because this is a higher risk to a mortgage lender, stated income loans usually have somewhat of a rate bump added on to your interest rate.

Remember that Mortgage Loan Documentation is a risk-based pricing factor that affects the overall interest rate an individual borrower will qualify for. Therefore, expect a slightly higher interest rate for Stated Documentation loans.

Another advantage of stated documentation is that it frees you up from digging up all those sources of income that may be difficult to prove. It can save you time and the hassle to hunt for hunting down that paper trail.

 

 ++