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A conventional mortgage requires a lot of paper work during the loan process. Among the many documents needed to process a mortgage loan are W2s and pay stubs. These documents are difficult to supply, if not impossible, for self- employed borrowers. Many borrowers do not cut a paycheck to their selves, especially when they own many stores. But these borrowers are profiting off of their businesses and usually have plenty of earnings to afford a mortgage.

But how do they prove that without the required documents? Some lenders have an Alternative Stated Income Mortgage that is meant for special circumstances like these. Using this method, the borrower must only submit a sign IRS Form 4506 or 8821. This is beneficial to both lender and borrower.

This benefits lenders because they are offering hassle free mortgage services to a group of borrowers that have the financial means to afford the services but are hassled by the regular conventional mortgage. It also develops a great lender/borrower relationship that could create business opportunities either by cross selling other services by referrals from the satisfied borrower.

Remember most self- employed borrowers have great credit and large amounts of cash. The Alternative Stated Income Mortgage also helps process the loans faster and more efficiently. The self-employed borrower all benefits greatly from the Alternative Stated Income Mortgage. This mortgage allows them to purchase their home faster. It also doesn't inconvenience them with time- consuming document requirements.

These borrowers also maintain their financial privacy. These mortgages, like traditional mortgages, still offer the array of different and flexible mortgages like the balloon mortgage and adjustable interest rates.

In summary, the Alternative Stated Income Mortgage is beneficial to both the lender and the self-employed borrower. Any self-employed person interested in the Alternative Stated Income Mortgage should contact a lender (Freddie Mac is one) that offers this mortgage for more information.

Milos Pesic is a mortgage agent and owner of a highly popular and comprehensive Loans and Mortgages informational web site. For more articles and resources on different types of mortgages and loans, mortgage refinancing, mortgage lenders and brokers and much more, visit his site at:

=>http://mortgage.need-to-know.net/