What is a stated income mortgage loan and why should I take one?


Why is a stated income mortgage loan good for you? It may not be.

Full documentation loans are recommended to all borrowers to provide them with best rates and avoid mortgage fraud. Stated income home loans are often associated with subprime/Alt-A financing, so they might carry significantly higher rates and you could qualify for subprime terms under some Stated Income/No Doc loan program instead of getting prime rates going Full doc.

Stated income home mortgages are best for only certain borrowers.

Stated Income mortgage loan programs are developed for people who cannot satisfy some Full Doc requirements, or want to preserve their privacy. Most common full doc requirements that borrowers most often fail to satisfy are:

  • Debt-to-Income (DTI) ratio;
  •  2-year same business/uninterrupted employment record;
  • Inability to properly document income from tips, commissions and seasonal business.

Also, going Stated Income may get you higher rates but you will avoid documenting your income and a lot of required paperwork. If you are Self-Employed or simply have any difficulty documenting income, it is likely that such a loan will be the most appropriate mortgage for you.

Popular stated income loans are:

  • Stated Income Verified Assets (SIVA);
  • Stated Income Stated Assets (SISA);
  • No Income Verified Assets (NIVA);
  • No Income No Assets (NINA);

No Income No Asset No Employment (NINANE, NINAE, NINJA), also called No Ratio and No Doc.

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