Stated income loans for investment property
A stated income loan lets an investor state income on the application instead of documenting it. Business-purpose loans only, for non-owner-occupied investment property. Not available for a home you will live in.
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Overview
With a stated income loan, you state your income on the loan application instead of providing pay stubs, W-2s or tax returns. Federal Ability-to-Repay rules require lenders to verify income for a home you will live in, so stated income is only available for business-purpose loans on non-owner-occupied investment property. It cannot be used to buy or refinance a primary residence, or a second home that you or your family will occupy.
The income you state must be truthful and reasonable for your profession, and lenders may compare it with typical earnings for your line of work. Many lenders also verify that your job or business exists, through an employer contact, a business license or a CPA letter. Credit, cash reserves and your down payment carry more weight in these files, and you will usually sign a certification that the loan is for business purposes.
Stated income programs vary in which properties they accept, how they verify employment and whether they allow LLC vesting. QMS compares non-QM investor lenders and checks whether a DSCR loan, which qualifies on the rent, would fit better. If you are buying a home to live in, we can review bank statement, profit and loss, WVOE and 1-year tax return options instead. Business-purpose loans only. All loans are subject to credit approval and lender guidelines.
Commercial, multifamily, hard money, fix and flip and stated income loans are business-purpose loans and are not available for a home you will live in.
Is it a good fit?
- Are buying or refinancing a rental or other investment property
- Will not live in the property yourself or have family live there
- Prefer not to provide pay stubs, W-2s or tax returns
- Have solid credit and cash reserves
- Can show that your job or business exists
- Want to close in your name or an LLC, depending on the lender
What you'll need
- Loan application with your stated income
- Proof of employment or business, such as a business license or CPA letter
- Bank statements showing down payment, closing costs and reserves
- Signed business-purpose and occupancy certification
- Entity documents, if closing in an LLC
- Government-issued photo ID
- Purchase contract, or mortgage statement for a refinance
How it works
How it works with QMS
Confirm the purpose
We confirm the property is a non-owner-occupied investment and the loan is for business purposes.
Compare programs
We compare stated income and DSCR options across non-QM investor lenders.
Verify and close
The lender confirms your job or business, reviews your assets and credit, and you close.
FAQ
Stated Income loan FAQs
Don't see yours? Call us or send a message. We answer the same business day.
305-425-1990Can I use stated income to buy a home I'll live in?
No. Federal Ability-to-Repay rules require lenders to verify your income for any home you or your family will live in, including a second home. If documenting income is the challenge, we can review bank statement, profit and loss, WVOE and 1-year tax return programs. They use alternative or reduced documentation and are available for a primary residence, depending on the lender.
Does the lender check the income I state?
The lender does not collect pay stubs or tax returns, but it does check that the income is reasonable for your profession and may compare it with typical earnings data. Many lenders also verify that your job or business exists. The income you state must be truthful, because misstating information on a loan application is a serious offense with legal consequences.
How is stated income different from a DSCR loan?
Both are for investment property only. A stated income loan uses the income you state on the application, while a DSCR loan qualifies on the property's rent compared with its payment and does not consider your personal income. If the rent supports the payment, DSCR is often the simpler option. We compare both for your property so you can choose.
What matters most in a stated income file?
Because income is not documented, lenders lean on the other parts of the file: your credit history, cash reserves, down payment and experience owning property. A stronger profile in these areas can widen your options and improve pricing. We review your file before submitting it, so you know which lenders are likely to be a fit.
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Tell us about your scenario and we'll price it across our lenders the same business day.