Stated Income Home Equity Loan Venice
Chimney Cleaning Service Venice — Home equity loan is a type of secured loan. It means that the loan is secured by the borrower’s property. The equity is the value of your home that the borrower owns. In order to determine the equity value of the borrower’s home, the borrower needs to take appraise the home on the current market. Home equity loans are a good way of having fast and easy money. However if you obtain a home equity loan you take the risk of losing your home if you are unable to pay the monthly payments because in home equity loans, you will set your home as collateral.
There are many types of home equity loans; one type of home equity loan is the stated income home equity loan. Stated income home equity loans are the types of home equity loans that means the lender is not going to be validating any income or assets of the borrower of the home equity for them to approve the loan. It may seem hard to believe but most home equity lenders practice this a lot. Home equity lenders implement stated income home equity loans to individuals who are borrowers that have outstanding credit ratings. Stated income home equity loan is a great choice for borrowers who are self employed and needs to have a home equity loan, however, the borrower must have a good credit rating in order to acquire a stated income home equity loan.
In other words stated income home equity loan is a specialty loan the does not validate the income or assets of a borrower with the usual documentations, such as those who are self employed or salaried borrowers. In addition to that, stated income home equity loans are types of loans that allows a borrower with outstanding credit rating to access financing without the usual documentations. There are also some stated income home equity loan programs that allow the borrower to finance one hundred percent of the value of their property for refinance or purchase.
The traditional way to qualify for a home equity loan is by calculating the borrower’s debt ratio to be certain that the borrower is within the guidelines. Some borrowers have trouble qualifying for a home equity loan with this way. That is why some home equity lenders are willing to process a home equity loan without inquiring the borrower’s income documentations (like tax refunds, pay stubs, etc.). To compensate for that, the lender uses the invalidated amount of income that is stated in the home equity loan application.
Some home equity lenders oblige the borrower to state a certain amount of dollar assets that will be validated, although, there are also some lenders that offer a “no income no assets” programs that forfeits the need for documentations.