Stated-income

With a stated-income mortgage, you do not need to prove your income with pay stubs or W2 forms. You must be able to document the nature of your employment (again, two years in the same job is usually required), but you can simply declare an income level that is reasonable for your line of work. Because you supply other documentation and will be able to show a healthy debt-to-income ratio, this type of mortgage carries only a slightly higher rate than a traditional loan. About half a percent is typical, though it varies with other factors such as credit score, the size of the down payment and how stable your income is.

Please be clear that income verbally stated by the borrower should be consistent with borrowers occupation (teachers typically don't make $100,000/year). Income also must be stated high enough to qualify for mortgage using the programs standard.

Other terms used to describe these loans include: Easy and No Doc loans could be classified into "Stated Income", "Stated Assets", "No Income Verification (NIV)", "No Income / No Asset (NINA)", "No Ratio", etc.

No Document or Low Document Loans - In certain situations it is either difficult or impossible for potential borrowers to show a lender their income on paper. In these instances any of the above-described programs can be used. All of the other program parameters must be met, however, in the case of income, a borrower may only be required to show a operating license or business license and/or limited income information. This type of financing is recommended for good income but find it hard to prove, self-employed borrowers or borrowers who have difficulty showing their income on paper, for one reason or another.