The Various Income Types and ways to qualify...

When qualifying for a mortgage loan to purchase or refinance a home, your monthly income is verified via pay stubs, w-2 forms or personal tax returns.  If your income or employment cannot be verified or your income isn't enough to qualify, there are several options to consider.  Here is a brief description of the various income types;

1. Full Doc (full documentation) - Best Interest Rates
   • Income is verified using pay stubs, w-2 forms or tax returns
   • 2 year employment history is verified
   • Obviously, this is the standard
     
2. Stated Income - Slightly Higher Interest Rates in most cases
   • Your income is (stated) and not verified
   • Your "stated" income must make sense for the employment field
   • 2 year employment history is still verified 
   • Best suited for borrowers with fluctuating monthly incomes such as self-employed borrowers or commissioned sales
     
3. No Ratio (no income disclosed) - Slightly Higher Rates than #2
   • You do not disclose any income
   • 2 year employment history is still verified
   • Best suited for borrowers with income difficult to verify such as food and banquet servers, bartenders or borrowers whose jobs description would make it difficult to (state) an income
     
4. No Doc (no documentation) - Highest Interest Rates
   • No income or employment is disclosed
   • Your employment is Not verified
   • Best suited for newly self-employed borrowers, borrowers changing careers or location with no history in the field, borrowers just getting back in the work force with or without history or training in the field or borrowers with new jobs paying no base salary

There are many ways to qualify, ask us how!

Talk to us and you'll be surprised how easy it is.

Main (480) 222-2121

Toll Free (800) 608-2121

E-mail info@flexmtg.net