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What are the drawbacks of stated income home loans?

April 26, 2017drawbacks home loans income

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What are the drawbacks of stated income home loans?

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Obviously, they might sound like a free pass, because you do not need paperwork. The negative is that the home equity loan rates are higher, as you might expect. This is because the company is taking a bigger risk, because they cannot verify what you are earning. Therefore, make sure to shop around before choosing anyone to find the best home equity loan interest rate. In conclusion, a stated income home equity loan can be your only choice if you do not have the right paperwork.