Many people today might be asking themselves this question: can they get a stated income refinance for themselves? Well, that seems to be a tough question no ordinary person can answer. However, the answer is quite simple: yes, of course they can as stated income refinance has similar rules like the stated income purchase.
There are various and distinct levels of a stated income transaction. Some of these transactions are also known as no income verification loans. They have different rules especially when it comes to the assessment of the creditworthiness of an individual. The interest rate of the loan decreases while the volume of paperwork goes down. The credit rating or credit score of the borrower is considered as the most predominant factor that affects the decision of a lender. A FICO of 640 plus is oftentimes the minimum lender’s consideration for reduced document loans. Or it may also become possible for rates to become subprime.
A stated income refinance mortgage loan is provided to a borrower given that he states his income, with assets and income sources are verified. This is called the SIVA which stands for Stated Income Verified Assets loans. Basically, this is the closest to full document loans and the rates are also close to full document loan rates.
What Is Stated Income Refinance
SISA Loan – SISA stands for Stated Income Stated Assets wherein neither income nor assets are verified. Here, you are most likely to provide your lender a two-year track of employment. However, loan to income ratio will also be considered.
NO DOC, No Ratio, and NIVA (No Income Verified Assets) or NINA (No Income No Assets) are all considered as variations of the stated income purchase and refinance loans that basically require Social Security Number and the address of the property or asset to be purchased. If the borrower made the decision to share with the creditor or the lender how they make a living together and what assets they both have, the more possibility that they will disclose and the better rate they get, too.
As of the present days, it is not very easy to get a stated income refinance or any purchase with less paperwork than State Income Verified Assets (SIVA) for your home equity line (HEL). The same condition is also true with getting a second mortgage – due to the current credit market condition.
So, if you want to get a stated refinance income, you need to keep in mind the following:
- You have to refinance to a fixed rate loan while loan rates are still low.
- FHA is insure by the US Federal government so they are easier to avail.
- Always know and protect your credit report and score by getting them free via online.
Fro further information about stated income refinance, be sure to contact a professionally qualified financial advisor before committing to any refinancing plan.