Stated Income Loan Program

Stated Income Loan Program: 3CALoan

Private Hard Money LoansIn the stated income loan program, the lender does not check the borrower’s income by looking at their income tax returns, W-2 forms, pay slip, or other records. The borrower states his or her income. Consequently, the lender trusts this information. It is also known as no doc loans.

 Guidelines of Stated Income Loan Program

Property Type in Stated loan program:

  • Single-family residences
  • Condos
  • PUDs
  • Townhomes
  • 2-4 units.

Restricted Property in Stated loan program:

  • No multi-family (5+ units)
  • Commercial or mixed-use properties.

Loan Purpose:


  • Primary residence only.
  • No second homes or investment properties allowed.


  • Minimum middle credit score of 700.
  • Within the last two years, there should be no late mortgage payment, lien, collection account and judgment.
  • If you have any notice on your credit report then you will not be eligible for the stated income loan program, no matter how old the notice. Reports like a short sale, bankruptcy, or foreclosure
  • Can close in the name of an LLC or Corp.
  • Conditional Loan Approvals issued within 24 hours

Requirements of Income, Assets, and Reserve:

  • Debt-to-income ratios cannot exceed 40%.
  • As a condition of funding the loan, the borrower must deposit liquid reserves to the lenders FDIC-insured bank account for a period of 6 months. The lender allows the borrower to withdraw this amount after six months.
  • Income is not verified under this loan type. It is only stated on the stated income loan program, which is also known as no doc loans. The income stated must be reasonable in relation to the position of employment as determined by the underwriter.
  • Gift funds are permitted for the remainder of the down payment and the reserve requirements. Consequently, any gift funds must come from an immediate family member, such as mother, father, sister, brother. It must be accompanied by a gift letter and bank account statements sourcing the funds. In addition, you must contribute at least 5% of the purchase price from your own funds.
  • Large deposits must be sourced with supporting documentation. Verification of seasoned liquid assets equal to the down payment. Reserve requirements must be documented by all your pages of last 3 months bank statements.

Employment Verification in Stated loan program:

  • CPA letter, business license, or tax preparer letter for self-employed borrowers with no reference to income.
  • Verbal verification of employment for salaried borrowers required within 10 days of funding with no reference to income.

Stated income refinance

Refinancing gives a homeowner the opportunity to replace an existing mortgage loan for a new one. In addition to less paperwork required, refinancing closes more quickly than a mortgage loan purchase. Through this option, the homeowner can reduce her monthly mortgage payment.

Final thoughts

If you have a higher credit score and more money on the side for a down payment then can apply for stated income loan program or no doc loans. For refinancing you can use stated income refinance. If you still have any question about this program, you can contact us at 818-322-5626 or (818) 3CA-Loan today.

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