Stated Income Program

A type of reduced documentation mortgage program which allows you to state on the loan application what your income and assets are without verification by the lender.

These mortgage programs may carry a higher interest rate than other mortgages. 

Self-employed borrowers often use self stated mortgage programs because their tax returns might not reflect that actual cash flow they have available to pay their mortgage. Other borrowers might use it, because their income comes from sources which are hard to document.

Advantages
. Don't need to verify income.
. Faster approval.

Disadvantages
. Higher rates.
. Higher down payment.