True Stated Income 2026 | Form 4506-C Not Required
An alternative to the “bank statement loan” program for the well-qualified self-employed borrower. You could say this is an equity-based loan program in that the max LTV would be 80%. You could also call it a “portfolio loan” or “Non-QM” mortgage.
Self-Employed Home Loan Income and Employment Documentation
Stated Income/Verified Asset mortgage programs are for borrowers that own their own business. Business entity types: C corporation, S corporation, LLC, partnerships. Employment and income sections on application left blank; No Ratio Alt Doc. Submit your loan scenario for Loan Officer review. (credit check not required!)
On a refinance transaction, the purpose of a program like this is to improve the borrower’s existing mortgage, Rate & Term refinance.
With a substantial down payment purchase or good equity-position refinance, excellent credit with liquid assets in the amount of at least 12 months housing expense reserves. It can be an alternative to a “bank statement loan” program for the well-qualified borrower.
California Only
Acceptable Self Employment Proof of Ownership
- Business License
- Business Certificate
- CPA Letter verifying 2yrs+ ownership including % of ownership, etc.
- EA Letter verifying 2yrs+ ownership including % of ownership, etc.
- Description ‐ Business, Industry, and Borrower’s Title on 1003
- Product Term: 7/1. Interest-Only payment is available.
Eligible Property Types:
- Single Family Residence SFR
- PUD
- Condos
- 2-4 Units
Credit Score Loan Amount / Credit Score / LTV Matrix
| Credit Score | Loan Amount | Loan-to-Value | Property Type |
|---|---|---|---|
| 720 | $4,000,000 | 90% LTV | Single Family Residence |
| 700 | $3,500,000 | 85% LTV | Single Family Residence |
| 680 | $3,000,000 | 80% LTV | Single Family Residence |
| 660 | $2,500,000 | 70% LTV | Single Family Residence |
| Credit Score | Loan Amount | Loan-to-Value | Property Type |
|---|---|---|---|
| 720 | $3,500,000 | 80% LTV | 2 Unit |
| 700 | $3,000,000 | 75% LTV | 2 Unit |
| 680 | $2,500,000 | 70% LTV | 2 Unit |
| 660 | $2,000,000 | 65% LTV | 2 Unit |
Reserves Requirements:
- All Stated Income Loans require 12 Months P&I Principle & Interest cash reserves for each property financed.
- Exceptions are common with compensating factors.
- Stated Income / Asset Based (whichever is higher):
- Stated Income on 1003 (reasonable for job position/job title) or no doc or no ratio loans
- Verified Assets including down payment + / 6 = Income
Employment Verification Documentation
W-2 Employee – VVOE Verbal Verification of Employment / Current Employment (1003 application) must show on credit report,
Underwriter Notes and Highlights
- Non-Owner-Occupied Investment OK
- 2-4 Units – OK
- Exception down to 660 Credit Score
- Loan Amounts to $2,500,000
- Loan Amount exceptions made to 15,000,000.
- Interest Only not available
- No 4506T not required.
- Tax returns not required.
- Paycheck stubs not required.
- 2-month Bank Statements
- Liquid assets from the business are OK if 100% ownership.
- DTI Max 45%
- Foreign Nationals OK
- 100% Gift funds OK and 60% Foreign National
Credit Notes Requirements:
- Previous housing payment history, 1 30-day late Maximum
- 3 open accounts on credit at minimum 1 year seasoned.
“Housing Event” Seasoning Requirements:
- Bankruptcy – 3 years
- Short Sale – 2 years
- Foreclosure – 5 years
Underwriter Notes:
- Exceptions down to a 660 Credit Score w compensating factors and substantial “Benefit to Borrower”
- Maximum loan amounts – $5,000,000. Loan amount exceptions made to 15,000,000
- Interest Only – Available
- No 4506-C Not Required
- Foreign Nationals OK
- 100% Gift Funds OK
- Maximum LTV 70% for Foreign National
Available in the Following States: California
Reference # 123-34c52-100717
Last Updated on 1 month ago by Broker Mortgages