Stated-Income Stated-Assets Mortgage (SISA) is a type of mortgage program in which the loan applicant is not required to furnish income documents or proof of sufficient assets. The home buyer's income and the assets used for the down payment, closing costs and reserves are disclosed on the loan application, but no supporting documents are required. History of employment and position held will still be verified by the lender bank.
SISA mortgages are mostly used by home buyers who are self-employed, small business owners whose businesses are mostly cash base such as street vendors, people with jobs that receive cash tips such as hotel bellhops, doormen and waiters, and those that preferred not to produce income documents. Borrowers with cash incomes often have enough income to afford a mortgage, but their provable incomes are not sufficient to qualify for the loan amount they need. Self-employed and commission base loan applicants often have incomes closely tied to their businesses and have complicated income structure, which makes proving their incomes challenging and difficult. To prove a loan borrower is self-employed, banks will often require a letter from the business accountant stating so.
Because assets are not verified, Stated Income Stated Assets mortgage applicants do not need to show a deposit trail for the funds used for down payments, settlement costs, and after-settlement reserves. Loan borrowers who receive a large portion of the income in cash will not have to explain the large amount of cash on hand. Stated Income Stated Assets mortgage is often the preferred and only choice for this type of home buyers.
Banks often require that SISA loan applicants to have near perfect credit history. Applicants need to have 700+ credit scores, and at least 4 open trade lines (active accounts) with no adverse ratings such as "lates", collections, charge-offs, foreclosure, etc.
Compare with Full Documentation mortgages, Stated-Income Stated-Assets loans may have higher interest rates, given that lending banks and secondary market investors carry higher default risks with Stated Income Stated Asset loans.
Currently, I have Stated Income Stated Assets home loan programs with 3-year fixed, 5-year fixed, and 30-year fixed interest rates of about 1.5% to 2% higher than Full-Doc programs. There are limitations to this special mortgage program. Loan applicants must have credit scores of 700 or higher. There are also occupancy and property type limitations. To find out more, please do not hesitate to call upon me.
Stated Income Stated Assets Loans
Lawrence Yip - Senior Loan Officer (718) 886-4438 Or email me at LYip@NYMort.com
Lawrence Yip 160-03 N. Horace Harding Expressway Flushing, NY 11365