An honest answer
Stated Income Loans
The loan people mean when they say 'stated income' has not existed since 2010. Here's what replaced it, and what you can actually get.
Let's be straight about this, because a lot of sites are not.
The true stated income loan — where you wrote a number on an application and nobody checked it — ended in 2010. The Dodd-Frank ability-to-repay rule requires a lender to make a reasonable, good-faith determination that you can repay. An unverified stated number does not meet that standard on an owner-occupied home.
Anyone advertising a genuine no-verification loan on your primary residence is either misusing the term or selling you something you should walk away from.
What actually replaced it
All four of these verify your income. They just don't use tax returns.
Bank statement loans. Twelve or twenty-four months of deposits. The closest thing to the old product for a business owner.
1099 income loans. The 1099 totals with an expense factor applied.
P&L only loans. A CPA-prepared profit and loss statement. The lightest documentation still available.
Asset depletion. No income examined at all. Your liquid assets are divided over a term and that becomes your qualifying income.
The one that genuinely comes close
On an investment property, a DSCR loan does not look at your personal income in any form. There is nothing to state, because nothing about you is being tested. The lender divides the property's rent by its payment.
Ability-to-repay rules apply to consumer mortgages on homes you live in. Business-purpose investment loans sit outside that, which is why DSCR exists in the shape it does.
If what you actually wanted was "a loan without my income in it," and the property is a rental, DSCR is your answer.
How to test a lender
Ask one question: "Which specific document will you use to verify my income?"
A straight answer names a document — bank statements, 1099s, a P&L, an asset statement, or a lease. A vague answer means either they don't know or they're about to verify it anyway and haven't told you.
Where to start
Tell me how you're actually paid and I'll tell you which of these five fits. That conversation costs nothing and pulls no credit.
Get a free rate quote.
No application. No credit pull. A written comparison across 175+ lenders, with the APR on each.
Let's look at your numbers
Send this and I'll come back with a written comparison: real terms, real fees and an APR on every option. No credit is pulled. If your current deal already wins, I'll say so.
Questions people ask
Do true stated income loans still exist?
Not for an owner-occupied home. The Dodd-Frank ability-to-repay rule requires a lender to verify a borrower's ability to repay, and simply stating an unverified income does not satisfy it.
So what do people mean when they advertise one?
Almost always a bank statement, 1099, P&L-only or asset depletion program. Income is still verified, just not with tax returns. Some investor programs come closer to the original idea because they are not owner-occupied.
Is a DSCR loan a stated income loan?
Closer than anything else. A DSCR loan on an investment property does not look at your personal income at all — it qualifies the property on its rent. There is no income to state.
What should I ask a lender who advertises stated income?
Ask exactly which document they will use to verify income. If they cannot answer plainly, walk.
Let’s look at your numbers
Fifteen minutes. Your real numbers. No pressure.
Call or text my cell, or book a time. You’ll get a written comparison with real terms and an APR on every option, and if your current deal already wins, I’ll tell you.