It’s important to spend a few minutes to talk about the use of “Stated Income” Commercial Loans. There is so much misinformation regarding this type of mortgage program that it just needs to be cleared up once and for all.
First, what is it? “Stated Income” is a loan program that allows a borrower to simply say the amount of income they make and use that income as the basis for qualifying for the loan they seek… no tax returns, no financial statements… simple, right? The interest rates are somewhat higher than fully documented loans but this is to compensate the lenders for the increased risk factor. They make up for it with lots of flexibility and easy qualifying.
