Stated Income Pay Option Loans

Despite recent secondary market restrictions, there are still Stated Income Pay Option Loans available to consumers. The pay option programs come with a variety of terms and qualifications. Pay option loans are particularly attractive to self-employed borroweres who receive uneven cash flow and/or have difficult to document income. We will take a look at some of the niche pay option programs still being offered in today's market for stated income borrowers.

There are still stated income pay option arm programs available for those with credit scores below 620. The maximum loan to value for these transactions is around 80%. There generally needs to be a good credit history with compensating factors.

There are also stated pay option programs with a fixed rate portion. This reduces the potential interest rate risk when compared to pay option arm programs. You can know what your interest rate is for the whole term of your loan.

There are still stated income pay option programs available for investors as well. The loan to values are generally lower, typically 75% LTV for purchases and 70% for cash-out. 3-4 Unit investment properties qualify as well. Nonetheless these stated pay option loan programs for investment properties are still available.

A pay option arm is a loan with an adjustable rate. The rate is fixed for an initial period and then adjusts higher. The borrower has the option to make a payment of either the fully amortized amount, interest only or a negatively amortized amount. I pay option arm mortgage can be a good selection if you need cash flow or do not plan to be in the home for very long.

Stated Income Pay Option Loans are available in truly fixed rate loan programs for highly qualified borrowers in several states, however you will find that these truly fixed rate stated pay option loans are not available at your neighborhood bank, and even name brand national lenders are not currently offering Stated Income Pay Option loans with fixed rate periods longer than 5 years.

» DISCLAIMER: The information contained in this article on 'Stated Income Pay Option Loans' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.