Stated Income, Stated Asset programs are not the same as No Documentation programs. Employment will more than likely be verified.

Stated loan programs can help a borrower acquire property which is in line with their true purchasing power, irrespective of reported personal income. An excellent choice for investors.

Often times self employed borrowers will require a SISA loan because they may write off most of their income for tax purposes.

In order to justify the higher risk associated with Stated-Income/Stated Assets mortgages, banks charge higher interest rates on SISA loans than on Full Documentation loans.

SISA loans usually require a higher credit scores. Genrally the higher LTV(loan to value)the higher the score needed to qualify.

And because of the higher interest rates you would only use this program when you are in a situation in which this is the only way to get qualified.

Choosing a stated income, stated asset loan does not mean that you will not furnish any documentation to your lender only that documentation will be limited. For example Instead of self employed borrowers providing tax returns you will need to provide a copy of your business license for the most recent two years or a letter from your CPA stating that you have been self employed for at least two years. To state your assets you will need to disclose your bank name or who the asset account is with.

Choosing the SISA loan does not guarantee an approval. The income and the assets that are stated still must be reasonable and is subject to an underwriters approval.

Many conformning lenders do not require IRS form 4506 to be signed at closing when doing a SISA or NINA loan. It is best to check with your lender or broker before closing to see if you are required to sign it.

Stated Income Stated Assets programs sometimes are abused because some believe that income and assets can be exaggerated enabling the borrower to qualify. The program is actually for borrowers who have hard to prove income sources and assets but lenders let them state the true amounts. Lenders usually only let borrowers who have excellent credit history use this program.

Another loan to consider is the NINA (No Income No Asset). The income and assets are not disclosed on the application and not verified. Employment is also stated and not verified on a NINA. Lenders will typically lend up to 95% LTV on these loans with very good credit.

Some loan programs only allow self-employed borrowers to state their income and assets while others allow both self-employed and wage earner borrowers to use this feature.

When a wage earner states their income the underwriter will often use salary.com or other similar resourses to determine if the income stated is reasonable.

Stated Income Loan - Stated income loan programs are offered on fixed rate mortgages, adjustable rate mortgages, or on negative amortization mortgages. They do not require income verification.

Most lenders also charge a higher rate on a stated income loan.

Stated income loans are very popular with business owners. Since they write-off a lot of their expenses at the end of the year on their taxes they sometimes have very little net-income to qualify for a full-doc loan.

Generally a no income, no asset (NINA) loan requires no verification of income or assets. However verification of employment is required and 2 years of same line of work is required. A No Doc loan is a NINA without verification of employment.

Some banks offer borrowers with high credit scores stated income loan programs with no adjustments, meaning the borrowers would not get "surcharged" or penalized for not furnishing proofs of income. These stated income programs offer interest rates that are indentical to that of full documentation loans.

Stated Income programs are ideal for those clients with non-documentable income sources. Typically for those who may receive portions of income in cash.

A stated income loan normally requires a slightly higher FICO score to qualify for the same loan to value as compared to a full documentation loan or bank statement program.

There are two common types of Stated Income Programs:
Stated Income Verified Assets Loan: (SIVA) - Loan approval is based on your stated income, credit history, and verified liquid assets (bank accounts, 401k, stocks, bonds, etc.). The Verified Assets should be consistent with the income claimed.

Stated Income Stated Assets Loan (SISA) - This loan has no assets being verified. You only state your income and state your assets on the application. This program may have a slightly higher interest rate because the assets are not verified.

Some variations of stated income include:
1)Reduced Doc - Income and assets are disclosed on the application but income is not verified. Assets are verified.

2)No Ratio - Income is not disclosed on the application and assets are stated and verified.

3)No Income No Asset - Income and assets are not disclosed on the application and are not verified. Employment not stated or verified.

Lenders will look at the "stated" income to verify it is not out of wack, you cannot state $80,000 worth of income working part-time as a cashier. This has to be an accurate figure of income actually made.

Stated Income loans still must be approved by an underwriter. The stated income must make sense for the employment that the borrower has.

They say you can beat the tax man or you can beat the bank, but you can't beat them both. If your income is difficult to document because of commission based pay or revenue from self employment, stated income loan programs are available which enable borrowers with sufficiently high credit ratings to borrow money at competitive rates. Programs are often available to borrow money equaling up to 100% of the value of your home, without the need to verify your income or your assets, or in some cases without the need to verify either.

Stated Income Loans are for borrowers with income sources that are not easily verified through normal channels. So, lenders allow borrowers to state their true income without verifyng it. These loan programs are usually for borrowers with good credit and come with a higher interest rate.

Many self employed borrowers take advantage of stated income loans so they do not have to provide tax returns to qualify.

As you move down the line on the different programs, from SIVA to SISA to NINA the interest rate will move a bit higher each time. Depending on your credit scores and LTV (loan to value) you might be able to qualify for one but not another.

Stated income is a very popular form of loan qualifying. As you're probably aware, most successful business owners write off a lot of their expenses at the end of the year on their taxes, causing very little net income to be used for qualifying for a loan. You also see this with borrowers that make tips, bonuses and commission as their sole form of income.