Stated Income Program for self-employed
September 3, 2024 | Posted by: Alex Vinarski
Stated income is bank program designed to help self-employed borrowers to get a mortgage without showing income from tax return. This program also called Alternative A or Alt A mortgage. Borrower will state his income, but will need to provide 6-12 months bank statements showing deposits from the business and business registration. Minimum down payment 20%.
This program works for purchase and refinancing, and also for rentals as well. Under this program clients can even get Home Equity Visa as a second or first mortgage up to 80% of the property value.
Borrowers who receive commission income, tips, and even cash income can also get a mortgage under Stated income program. For clients who can't provide bank statements we can arrange private mortgage without any income verification.
Main advantages of Stated income program:
- Minimal documents requirement. Only Banks statements and Business registration.
- Rates are very close to regular bank rates.
- Don’t need to be in business for 2 years as for regular program for self-employed
- No CMHC insurance fee. There is 1% on time fee. CMHC insurance with 20% down is 3.3%.
- Down payment can be gifted. Even allows partially gifted down payment for rental property.
- Clients with bad credit also can get mortgage under Stated income program.
