Stated Documentation (Stated Income) loan programs are very similar to Full Documentation programs, except for one important difference, you don't actually prove your income.

Instead of providing pay stubs, W2s and/or tax returns, a borrower obtaining a Stated Documentation loan will only have to prove their employment for at least two years (with the lender obtaining a Verification of Employment with no income shown).

A Stated loan program *may* require asset information (bank statements, asset accounts, 401k statements, etc) to be provided under some circumstances. Stated programs always require proof of rental of mortgage history.

In today's economy with many borrowers deriving their income from multiple sources, Stated income programs are being utilized very frequently.