Stated Income/Stated Asset Loan

If you have an excellent credit rating but a substandard debt-to-income ratio or some other problem with providing the documentation required to verify your income, a stated income/stated asset mortgage loan may be your best or only option.

In this case, a lender can sign off on your loan without verifying your income and depending on the loan type, your liquid assets. This mortgage product can either increase your buying power altogether or can help you qualify for a mortgage loan. It’s a practical option if you can afford to pay an agreed upon amount but can’t prove your ability to pay it. Common candidates for this type of loan are the self-employed, and service employees who earn tips.

For the self-employed, lenders may look for an at least two-year self-employment history or outside employment history in the same field. In some cases borrowers can prove their stated employment record by obtaining a letter from an accountant or CPA that verifies the borrower’s self-employment history. The letter must be typed on the accountant’s or CPA’s company letterhead. A two-year business license confirmation also may provide the required proof. The type of loan that will be obtained with the stated income mortgage also can impose additional qualifiers.