Most lenders also charge a higher rate on a stated income loan.

Stated income loans are very popular with business owners. Since they write-off a lot of their expenses at the end of the year on their taxes they sometimes have very little net-income to qualify for a full-doc loan.

Generally a no income, no asset (NINA) loan requires no verification of income or assets. However verification of employment is required and 2 years of same line of work is required. A No Doc loan is a NINA without verification of employment.

Some banks offer borrowers with high credit scores stated income loan programs with no adjustments, meaning the borrowers would not get "surcharged" or penalized for not furnishing proofs of income. These stated income programs offer interest rates that are indentical to that of full documentation loans.

Stated Income programs are ideal for those clients with non-documentable income sources. Typically for those who may receive portions of income in cash.

A stated income loan normally requires a slightly higher FICO score to qualify for the same loan to value as compared to a full documentation loan or bank statement program.

There are two common types of Stated Income Programs:
Stated Income Verified Assets Loan: (SIVA) - Loan approval is based on your stated income, credit history, and verified liquid assets (bank accounts, 401k, stocks, bonds, etc.). The Verified Assets should be consistent with the income claimed.

Stated Income Stated Assets Loan (SISA) - This loan has no assets being verified. You only state your income and state your assets on the application. This program may have a slightly higher interest rate because the assets are not verified.

Some variations of stated income include:
1)Reduced Doc - Income and assets are disclosed on the application but income is not verified. Assets are verified.

2)No Ratio - Income is not disclosed on the application and assets are stated and verified.

3)No Income No Asset - Income and assets are not disclosed on the application and are not verified. Employment not stated or verified.

Lenders will look at the "stated" income to verify it is not out of wack, you cannot state $80,000 worth of income working part-time as a cashier. This has to be an accurate figure of income actually made.

If you would like more information on Stated Income Loans please fill out the request form below.

Many self employed borrowers take advantage of stated income loans so they do not have to provide tax returns to qualify.