Stated income loans used to be for the self employed or hard to prove income. That is not the case anymore.

If the majority of your income is received in bonus or other performance based pay, however you are employed and receive a W 2 from your employer, a stated income loan for wage earners may be for you.

You can use a stated income loan for any income that you can't or do not want to provide income documentation for, including wage earners.

The amount of income you state has to make sense for your profession. For example you cannot say that you work as a cashier at Wal-Mart and make $300,000 a year. Underwriters normally use a website such as Salary.com to check the average salary for a given profession in a specific geographic area.

Wage earners can get stated income loans but there may be more restrictions, higher rates, and lower loan to values. Wage earners that use stated income loans usually have other income that is hard to document.

The point of a stated income loan is for borrowers that have difficulty PROVING the income. Make sure with a stated income loan, that the mortgage payment you will receive will be something you can live with in the future.

Some lenders permit Salary employees to get stated income loans

 

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