Classic stated income loans — where you simply stated income with no proof — no longer exist for owner-occupied homes due to ability-to-repay rules. Today the same borrowers qualify with bank-statement, P&L, asset-based, or DSCR programs, which verify income through alternative documents instead of a bare statement.
What 'stated income' meant — and why it ended
Before 2008, borrowers could state income without documentation. The ability-to-repay rule ended that for owner-occupied loans. Anyone advertising a true no-proof 'stated income' owner-occupied loan today should be treated with caution.
What replaced stated income
- Bank statement — deposits stand in for tax returns.
- P&L only — a CPA statement.
- Asset depletion — qualify on assets.
- DSCR — for rentals, qualify on rent alone.
The good news
These programs are often more flexible and safer than old stated-income loans. See no-tax-return mortgages.
Frequently asked questions
Do stated income loans still exist in California?
Not in the pre-2008 form for owner-occupied homes. Bank-statement, P&L, asset-based, and DSCR loans serve the same borrowers today with proper income verification.
What is the modern version of a stated income loan?
For self-employed buyers, a bank-statement or P&L loan; for investors, a DSCR loan that qualifies on rental income.
Can investors still get something like stated income?
Yes — a DSCR loan qualifies an investment property on its rent, with no personal income documentation.