Definition: A stated income loan is a type of low-documentation loan. Your lender asks how much you make, you throw out a number, and they run with it.
Of course, qualifying for a stated income loan is not always easy. At a minimum, you have to have good credit. Furthermore, you're supposed to tell the truth about your income even though you don't have to prove it.
Stated income loans are useful for business owners and people who want to keep their income level private.
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Also Known As: Liar loans
Examples:
I don't have any W2's so I'll use a stated income loan.
