Stated Income Definition


A stated income loan is a low-documentation type of loan. Proof of income will not be required by the lender. A stated income loan is most suitable for commissioned or self-employed professionals, freelancers and contractors who have difficulties providing consistent income records; or simply prefer to keep their privacy and save themselves the hassle of providing income evidence.

In order to qualify for a stated income loan, one has to have a very good credit score. With a stated income loan, your income will not be verified. It only needs to be consistent with your ability to repay the loan.

If your income is low, you shouldn't conveniently overstate your income. Rather, there are other options such as No doc, No ratio, No income/assets loans that may benefit you.

Stated Income Loan Types

Stated income loans come in several flavors - stated income verified assets (SIVA) and stated income stated assets (SISA). A no income no asset (NINA) loan also falls into the category of stated income loans.

Stated income loans are offered to both fixed-rate and adjustable rate mortgages and will have a higher rate compared to full documentation loans.

The general feature of a stated income loan is that income is not verified but track of 2-year consistent employment history (same employer and/or same business) must exist.

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