"Stated income" earned a bad reputation before 2008, when loans were approved on a borrower's word alone. Those loans are gone. What exists today is smarter: alternative documentation programs that verify your ability to repay through business financials, deposits, or assets, just not through tax returns that understate what your business really earns.
Today's stated-income-style options
- P&L-only loans, qualify with a profit-and-loss statement prepared by a CPA or licensed tax preparer. Often the lightest documentation path for an established business.
- Bank statement loans, 12-24 months of deposits stand in for tax returns. Full guide →
- Asset-based qualification, your portfolio does the qualifying. Assets as income →
- DSCR investor loans, for rentals, the property's income qualifies, and your personal income is never documented. DSCR loans →
How a P&L loan works
- Your CPA or tax preparer prepares a 12-24 month profit-and-loss statement for the business.
- The lender reviews the P&L alongside credit, assets, reserves, and the property, some programs also sample a few months of statements for consistency.
- You qualify on real business performance, not the taxable remainder after depreciation and write-offs.
Frequently asked questions
Are stated income loans legal now?
Modern programs are fully legal non-QM loans. Lenders must verify your ability to repay, they simply do it through business financials, deposits, or assets instead of tax returns. Nothing is taken on your word alone.
What credit score and down payment do I need?
Guidelines vary by lender, but most programs look for solid credit and 10-25% down or equivalent equity, with stronger terms as the file strengthens. Jackie will match your profile to the lender whose box you actually fit.
Which is better for me, P&L, bank statements, or assets?
It depends on how your income flows. Clean, consistent deposits favor bank statements; a complex entity structure with a good CPA often favors P&L; substantial portfolios favor asset-based programs. Jackie routinely prices a file more than one way and shows you the comparison.
Can investors use stated income programs?
Yes, and for rental properties, a DSCR loan may be even simpler, since it qualifies on the property's rent rather than your income at all.