You don’t see many non-deposit taking lenders with competitive conventional stated income programs. Street Capital, which lends only through brokers, is one of them.
The company revamped its stated income mortgage 11 days ago by:
- Eliminating its stated income rate surcharge
- Adding commission income as an employment type
- And giving its stated products all the features and flexibility of its regular mortgages.
Street lends up to 65% loan-to-value on its conventional Stated Income Program. Above that, borrowers must pay an insurance premium (LTV tops out at the 90% insurer maximum).
This product is available on 1- to 5-year fixed terms and 3- and 5-year adjustable rate mortgages.
Income documentation requirements are “flexible,” says the company, and from what we hear, that’s quite true.
Be that as it may, borrowers must display rock-solid credit, prove two years in business and have their own equity (i.e., no gifted or borrowed down payments)
Topping our wish list for this product would be higher maximum loan amounts. The maximum is currently $750,000 in greater Vancouver, Toronto and Calgary. That’s often a bit shy for successful self-employed borrowers in high-priced cities.
That said, the product just re-launched and Street deserves time to ramp it up before incurring more risk.
Street Capital is owned by Counsel Corporation and is in the process of obtaining its bank license. For more info on that, see: Street Capital Seeks Bank Charter
Sidebar: Counsel stock surged to over a 4-year high on February 1, one day after it announced this product.
Rob McLister, CMT
Last modified: April 28, 2014
