Stated Income Loans
Gone are the days where you can make up your income in order to qualify for something you cannot afford.
Stated income loans were originally intended for self-employed borrowers with very complex income tax schedules. In order to qualify for this type of loan, borrowers could simply state what their monthly income was without having to provide the supporting documentation to verify it. Although a new program has recently emerged that resembles the Stated Income loans of the past, it is not truly the same “stated” program as before. This new program does not look at taxable income off of a borrower’s tax returns, but instead analyzes a 12 month history of business account deposits and deductions. The resulting average monthly positive cash flow from the account is what is used in order to qualify.