Stated Self Employed Loan Program

The New Jersey Stated Income program is designed for self-employed borrowers with excellent credit and an established business (two-year minimum). This program eliminates the need to verify income. But the borrower’s income must make sense for the type of business they are in. The stated income program is still considered a “higher risk” product and it is strongly advised that these loans be processed and underwritten with a common sense approach and a careful eye.

Borrower Requirements:

• Self-employed borrowers are defined as individuals with a minimum of 25% interest in a business.
• Copy of business license and/or letter from CPA required. Letter must indicate length of time business has been in operation (minimum 2 years), how long CPA has been retained by the borrower and percent of ownership.
• Borrower’s application must state income.
• Gift funds are not permitted unless over and above minimum down-payment requirement of 35%.
• Use of business funds for closing and reserves is acceptable, if borrower is a 100% owner of the business and accountant provides written statement that personal use of such funds will have no adverse effect on the business.
• Assets must be verified and be consistent with stated income

Although there is NOT a credit score minimum, the borrower must have a clean credit profile.

You must be able to put down 35% to be considered for this type of loan. The loan limits depend on the strength of the complete file.

Typically rates for this type of program are currently in the 4's which is great considering there are only about 2 lenders in New Jersey that will even entertain these types of stated loans.