Have you considered a stated income loan? If so, the application requires you to record your income and proof of income, such as pay stubs. For some people, this is preferable to other loan types. In some situations, this type of alternative loan is used by individuals who find it difficult to be approved for a more conventional loan. Some other benefits of the stated income loan can be found below.

Smart for Those with Irregular Income

Not all people receive a consistent paycheck each week or each month. For example, some employed people may experience a situation of “feast and famine” when it comes to income. For example, one month you may make a lot of money, and the next, much less. If you find yourself in this situation, a stated income loan is a good option.

Simple Application Process

With this loan setup, you are deciding if you can afford this loan yourself. Instead of the bank applying various complex formulas to figure out if you make enough money to repay the loan, the lender will provide you with a payment schedule. At this point, you can figure out if it is the right financial product for you.

Faster Processing

When you opt for a stated income loan, there is much less documentation that must be processed. Because of this, the turnaround time is usually much shorter. Some investors appreciate this because it lets them take advantage of this type of limited-time opportunity. One example would be with real estate property. If there is a property that is currently on the market, and you need to move fast to secure it, then this type of loan may be ideal.

Securing a Stated Income Loan

There are more than a few situations where a stated income loan can be invaluable. For example, if you find it difficult to be approved through a conventional loan, this may be a good option. If you need funds quickly, then this type of loan is a smart option since the approval time is usually faster.

If you decide that you want to apply for a stated income loan, be sure to know its terms before signing anything. Also, make sure to find a reputable loan company that will provide you with favorable terms that work with your current and future financial situation. This is the best way to take advantage of this loan product.