How to Qualify for a SIVA or SISA (Stated Income) Mortgage Loan
With most mortgages, lenders want documented evidence that you make enough that you can pay back the loan. With a stated-income mortgage, your lender requires little or no evidence of your income before authorizing the loan. This makes them popular with self-employed individuals who don't have regular pay stubs or with people who are willing to lie to get a bigger house. Due to the risk of fraud and the early 21st century's foreclosure boom, it's difficult to obtain a stated-income loan.
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Instructions
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Choose which type of loan to apply for. Stated Income Verified Assets loans require you to prove your assets, but not your income. Stated Income Stated Assets requires no proof of either. Both come with higher interest rates than a regular mortgage, with SISA the higher of the two.
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Check your credit score. A lender will want to see proof of excellent credit before they risk money on a stated-income loan. If your credit isn't outstanding, take steps to improve it, such as paying down debts, before you apply for a SISA or SIVA loan.
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Collect money for a down payment. Lenders have become cautious about stated-income loans, and 30 percent down is now the norm, rather than the standard 20 percent for a thoroughly vetted mortgage. Some lenders may insist on 35 percent.
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Submit any documentation your lender asks for. You won't have to provide W2 forms or pay stubs, but lenders may ask for a couple of years of bank statements to see how much you've been depositing over the year. If your lender wants to verify that you've been self-employed for a while, he may also ask for proof you've held a business license at least two years.
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Tips & Warnings
It's not as important that you get your income correct down to the penny as it is that you make a good-faith effort to keep it truthful. A small error in accounting when figuring your net income from self employment is acceptable; deliberately falsifying figures is not. This is considered fraud.
Most lenders will require you file an IRS Form 4506, which gives a third party the right to check your tax returns. This makes it easier to audit your loan later and discover any irregularities.
