A stated income loan, also referred to as a no-documentation loan, offers borrowers the ability to state their income on the loan application without providing the usual income documentation like tax returns or W-2 forms. This mortgage option is particularly suited for self-employed individuals or those with non-traditional income sources. By relying on a written verification of employment (WVOE) or profit and loss (P&L) statement, stated income loans streamline the application process and provide convenience for borrowers who may find it challenging to meet the stringent income documentation requirements of conventional loans.

Stated income loans simplify the application process by allowing borrowers to state their income without providing extensive documentation.

Borrowers have the flexibility to report their income based on their own assessment, which can be beneficial for those with fluctuating income or multiple income streams.

With reduced documentation requirements, the approval and closing process for stated income loans can be faster compared to traditional mortgage options.