Stated Income
You state it. The property and your profile support it.
Stated income programs let a qualified borrower declare income supported by credit strength, reserves, and equity rather than by documentation. Available primarily on investment and business-purpose transactions.
What makes this loan different
- Income stated on the application, not documented
- Strong credit and reserves carry the file
- Typically 20% to 30% down or equivalent equity
- Fast underwriting with very few conditions
Who this is built for
- Investors and business-purpose borrowers
- Owners between fiscal years or restructuring
- Borrowers with privacy concerns about their finances
How the modern version differs
Today's stated income loan is not the 2006 version. Lenders still verify employment or business existence, still pull credit, still require meaningful reserves, and still order a full appraisal. What they do not do is calculate your income from documents.
Reasonableness matters. A stated figure must make sense for the occupation and the market, and an underwriter will push back on a number that does not.
Where it is available
Most stated programs are written for investment property or business-purpose loans, where consumer income rules do not apply in the same way. Owner-occupied stated options exist but are narrower.
What lenders typically ask for
- The income figure stated on the application
- Business existence verification
- Credit report, ID, and documentation of down payment and reserves
- In many cases, a reasonableness assessment comparing stated income to the occupation and business
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Availability is narrow and legally constrained.
Federal ability-to-repay rules place significant restrictions on stated-income lending for owner-occupied consumer mortgages. In practice this documentation method is generally found on business-purpose and investment-property financing. Whether any version is available for a given scenario depends on occupancy, purpose, and the individual lender.
Down payment and reserves carry the risk.
Because income is not documented, lenders offset with substantially larger equity requirements and post-closing reserves.
Pricing depends on the program and the lender.
Pricing depends on the program, the property, the documentation method, and the lender. As a broker we shop hundreds of wholesale lenders on every file rather than selling one institution's rate sheet, which is how a file gets priced competitively instead of priced once.
The stated figure has to be defensible.
Lenders commonly test stated income for reasonableness against the occupation and business. A figure that fails that test can sink the file late.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.