Stated Income programs accepts whatever income is stated by the borrower on the application—within reason. Some people may find this difficult to believe: but it is true.
This is the essential No Income Verification program. The applicant must indicate a qualified income on the application; and the lender will use that income figure to underwrite the borrower's income qualification.
The lender will still perform a Debt-to-Income (DTI) qualification, but the income used will be the income stated. Again, the lender will still verify the borrower's employment or self-employment, but no income verification or documentation will be performed.
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