Stated income mortgage loans use alternative documentation for eligible borrowers whose tax returns or W-2 income do not present the full picture. Modern programs still require verification and ability-to-repay analysis; “stated income” does not mean income can be invented or left unsupported.
How Stated Income Loans Work Today
Current alternative-documentation programs may evaluate cash flow, deposits, contract income, business performance, verified assets, or investment-property income instead of relying exclusively on conventional tax-return calculations. The program must match the borrower’s actual circumstances and lender guidelines.
Truthful documentation is always required. Program names are industry shorthand. The lender still evaluates the full application, verifies required facts, and determines whether the borrower and property satisfy its underwriting rules.
Alternative Documentation Options
Bank Statements
Personal or business bank statements may document qualifying cash flow for an eligible self-employed borrower.
1099 Income
1099 mortgage programs may use eligible gross contract income with the lender’s required expense treatment.
Profit-and-Loss
A qualified current P&L statement may be used when it is prepared, supported, and verified under the selected program’s rules.
Asset Depletion
Verified asset-depletion income may help eligible borrowers with substantial liquid assets and limited traditional income.
DSCR Qualification
Rental-property DSCR qualification may use eligible property cash flow instead of the investor’s employment income.
No-Doc Programs
No-doc options may reduce traditional income documentation but still require meaningful borrower and property review.
SIVA and NIV Mortgage Terminology
SIVA: Stated Income, Verified Assets
The borrower’s income is reviewed under the program’s stated-income rules while eligible assets are documented and verified.
NIV: No Income Verification
The lender may not calculate qualifying income conventionally, but it still evaluates assets, reserves, credit, property, and the transaction.
These names are not universal product standards. Documentation and eligibility must be confirmed for the specific lender and program.
Who May Qualify?
Potential candidates include self-employed professionals, business owners, consultants, independent contractors, commission-based borrowers, and real estate investors. Credit, reserves, property type, occupancy, loan-to-value ratio, and housing history remain important.
What Documents Should I Prepare?
- Identification, credit authorization, and current housing information.
- Purchase contract or current mortgage statement for the subject property.
- Asset and reserve statements required for the selected program.
- Applicable bank statements, 1099s, P&L, or business verification.
Frequently Asked Questions
Are stated income loans the same as no-doc loans?
No. Stated-income programs generally rely on defined alternative documentation. A no-doc mortgage may use a different qualification method and can have stricter equity, asset, credit, or property requirements.
Can I qualify using only a P&L statement?
Possibly, if a lender offers the program and the complete file meets its requirements. Supporting statements, business verification, reserves, and third-party preparation may be required.
Do these programs use tax returns?
Some do not require personal tax returns for income calculation, while others may request them for a different purpose. Documentation requirements must be confirmed for the selected program.
Compare Your Documentation Options
Tell us how you earn income and what documents are available. We will compare the programs that fit the actual scenario.
1st Capital Group as dba of GFL Capital Mortgage Inc | Company NMLS #64367 | Nick Lazarevic NMLS #386391 | Licensed Mortgage Lender | Equal Housing Opportunity | All loans subject to lender underwriting approval. Programs, rates, terms, and conditions are subject to change without notice. Not a commitment to lend.