One of the benefits of stated home loans is that they make it possible for people in self-employment to qualify for a loan. When applying for a stated home loan, your lender takes into account your cash flow from your bank statements. This allows self-employed people to be accepted for a loan without having to provide any W-2 statements or tax returns.
Apart from making it easier to get a loan, what are the other pros of self-employed loans? Here are 4 benefits of stated home loans.
1. Perfect for self-employed people
A self-employed home loans company persons know that it’s difficult to show regular income. That is why for a stated home loan, you only have to provide bank statements from the previous 12 or 24 months that show your cash flow. Your tax returns don’t always show the true picture of your financial stability. Therefore, you don’t need to provide these documents.
2. Faster application process
Usually, you have less paperwork when applying for a local stated income loans office. You don’t have to find old pay stubs or tax returns to submit. If you are self-employed, your loan application can be approved based on your bank statements and letter from your accountant. In many cases, the whole application process may be faster than applying for a traditional mortgage.
3. More flexibility
With a stated income loan, you usually have more flexibility and more say over your financial decisions. For example, lenders don’t limit you to set loan amounts based on formulas they have worked out. You can see the monthly repayment schedule and then decide if you can afford the loan or not.
4. Self-employment isn’t a barrier to owning your own home
The best mortgage lenders such as LBC Mortgage want to help self-employed people own their own home. This is why they offer loans at competitive rates and approve home loans where other lenders would refuse the application.