Stated Income Loan

What is a Stated Income Loan?

Stated Income Loans are for borrowers who have difficulty verifying their income to lenders, such as those who are self-employed. Previously, stated income loans were easy to get and required no documents, but after the 2008 housing bubble they became selective. Incomes are self-reported, thus riskier for lenders. Interest rates may also be higher for those who take out stated income loans.

 
What about Assets?

Some lenders also allow assets to be stated, but some prefer assets to be verified. Stated income-stated asset loans are called SISA loans, whereas stated income-verified asset loans are called SIVA loans.

 

Requirements

Because of the higher risk, stated income loans have stricter requirements for borrowers which include:

  • Larger down payments

  • Significant amount of cash in their bank accounts

  • Higher credit scores

  • Verification of employment

  • (With SIVA loans) Verification of assets