Stated Income Loan

A stated income loan is a mortgage loan that does not require you to provide documentation of your income. A stated income mortgage loan is most beneficial to individuals whose income is hard to document. Typically, people who fall under this category are self-employed or have income that is commission based.

When you apply for a stated income loan you will be required to state your income on the mortgage loan application. The figure you state is what the lender will use to qualify you for the loan. While a stated income mortgage loan does not require you to provide income documentation you may be required to provide proof of employment such as a copy of your business license. In addition, the income you state on the application should be reasonable for the line of work that you are in.

A stated income loan is available to borrowers in all credit grades. Qualification for these loans usually require the borrower to have a certain minimum credit score. The minimum credit score required for a stated income mortgage loan will vary from lender to lender but with most lenders you will need to have a fico score of at least 580.