How to Apply for a Stated Income Loan

If you operate a small business or want to purchase your own home, you may have the income available to make mortgage payments but don't have the documentation to prove it. Stated income loans were designed for people like you and will provide the opportunity to say goodbye to your landlord or to grow your business.

Instructions

Difficulty: Moderately Challenging

1. Decide if a stated income loan is right for you. If you have been working for the same employer for two years and can prove this with bank statements and tax forms, you should apply for a regular loan with a lower interest rate. If you lack these documents, you can apply for a stated income loan.
2. Choose the type of stated income loan that is best for you. If you have liquid assets, apply for a Stated Income Verified Assets Loan, which will require proof of your credit history or liquid assets. Alternatively, you can apply for a stated income loan that will not ask for this information.
3. Check what documents you will need. Although you are applying for a stated income loan, this doesn't mean you will not need documents to fill out the form. Call the bank ahead of time or visit online to see what is required.
4. Be truthful. If you exaggerate your income, you may be turned down for the loan, or, if you are accepted, you may have difficulty making payments. Be sure you can really pay off your mortgage and that your sources of income really are secure.

Tips & Warnings

• Stated income loans are ideal for the small business owner who has backing but does not have a solid employment history.
• Avoid signing anything that will give the lender access to your tax records in case you default. This may make you vulnerable to fraud charges. Few stated income loan applications require this permission, but there are some that do.
• Do not lie on your application. You may face default or even fraud charges if you are found to have been dishonest about your income.