A stated income mortgage loan is a type of mortgage where the borrower is not required to document their income or employment. Instead, the borrower simply states their income on the loan application and the lender takes the borrower’s word for it. These types of loans were popular before the 2008 financial crisis, but are now largely unavailable due to stricter lending standards put in place to prevent fraud and protect lenders from default. The stated income mortgage loans are also referred as “no-doc” or “low-doc” loans, because the borrower does not have to provide extensive documentation of their income and employment.
