If you are self employed or contracted out you have probably found it difficult to get a loan approved.
People who work for themselves often don't keep accurate and detailed records about their income and their own salary.
For this reason many self employed individuals get rejected when they apply for traditional mortgage loans.
The stated income mortgages are beneficial to these people because they offer a solution to this problem.
One of the reasons why the stated income loan is so attractive is that you don't have to prove your income in the loan documentation.
In order to get your loan application approved all you need to do is show a couple years worth of tax receipts and have a good credit rating.
Because these loans are extremely risky to different investors, it is important that you have a good credit rating for the loans.
Your rating will determine if you get your loan application approved or not.
People who have lower scores shouldn't bother applying for these loans because most lenders are not willing to take the risk.
Given the recent housing crisis that occurred, a lot of lenders lost money on the stated income mortgages.
Because these loans attracted a lot of lower income individuals, many of them defaulted on their loans once the economy went sour.
Anyone who is interested in applying for a stated income loan needs to make sure that they do their research and find a loan that can work for them.
A comprehensive search online for different stated mortgage lenders will ensure that you find something that can work for you loan.