Do you work in a business that has a lot of “cash” income? Do you have large ‘personal expenses’ that you deduct from your income to save taxes?
If this sounds like you, a ‘Stated Income Mortgage’ might be your answer.
State Income Mortgages provide a borrower who cannot prove their income in the normal way (i.e T4 or job letter) the opportunity to get a mortgage. Lenders will allow you to ‘declare’ your income and use that ‘declared income’ to qualify you for a mortgage. It’s important to note that the income you ‘declare’ is reasonable given the business that the you are in.
Who Qualifies for a Stated Loan?
Typically, these loans are only available to the self-employed borrower and require a significant down payment (at least 35%). Also, the credit score of the borrower(s) must be higher than normal. If credit is good, these loans are offered at very attractive interest rates.