Did you know that you can secure a loan without providing any type of documentation? Well, the answer is yes; with the help of stated income lenders, you can get no documentation mortgage very easily.

What is Stated Income Loan?

A stated income loan is a type of loan that does not require the borrower to show any type of documentation to prove their income. This system works by the borrowers stating their income, and banks use it to decide the amount of loan and rate to be provided.

Stated income mortgages are very beneficial for small business owners who might have difficulty qualifying for loans because of fluctuating income and tax deductions.

Who is a Stated Income Loan For?

Stated income mortgage loans are created for self-employed borrowers because they have irregular income. This loan program is the best financing option for individuals who are trying to run a small business or those who are working as freelancers or independent contractors and someone whose income is more unpredictable and difficult to verify than regular W-2s.

How to Qualify For a Stated Income Loan?

The requirement to qualify totally depends on the type of loan that is appropriate for your situation and which stated income program you apply for.

Here are the general requirements that are considered for qualifying stated income loans:

  • For an alt-doc loan program, you will be required to provide profit and loss statements and one recent bank statement.
  • For a bank statement loan program, you will be required to provide 12 to 24 months of bank statements. This type of loan is sometimes called a stated income and also a verified assets (SIVA) loan.
  • For either loan type, in case you are self-employed you will be required to show that you've been in business for at least two years.

When is a Stated Income Loan a Good Option For You?

A stated income home loan is a good option for you if you are someone who can't qualify or doesn't want a traditional mortgage, but you can show your income using non-traditional ways to verify your documentation.

In case you are a small business owner or someone who is self-employed, you could benefit from a stated income mortgage. It can be harder to apply for standard mortgages because of all the formalities and documentation. But with a stated income loan, you can easily get a loan in no time without any difficulties.

Stated Income Loan vs. Traditional Mortgage

Stated income loans require borrowers to state their income so that the lender can qualify them for the mortgage. This type of loan is flexible for individuals with unpredictable incomes, such as small business owners and self-employed people. Stated income loans do not require any type of income verification which is why it is a popular choice for borrowers who have difficulty documenting their income.

A traditional mortgage, on the other hand, is a type of home that is backed by mortgage companies and financial institutions like traditional banks and credit unions offer them. Unlike stated income mortgage loans require all the documentation.


In this type of loan, you don't even have to worry about the stated income mortgage rates as you can find competitive rate of interest, although it does depend on a few factors. But you can rest assure that these are equally what you will find with traditional mortgage. You just have to decide whether you can afford the loan yourself or not. You will not have to worry about banks applying complex formulas to provide you loan; the lender simply gives you a loan based on your income.