Stated Income Loans in 2026: What Still Exists and Who Qualifies

Stated income as it existed before 2008 is gone. Dodd-Frank's Ability-to-Repay rule requires all residential mortgage lenders to verify a borrower's ability to repay, which means some form of income documentation is always required. What exists in 2026 is a set of non-QM products that accept alternative income documentation instead of tax returns.

What Replaced Stated Income

• ✦Bank statement loans: 12 or 24 months of personal or business bank statements; expense ratio of 50-80% applied to deposits to derive qualifying income
• ✦P&L-only loans: CPA-prepared profit and loss statement, no tax returns required; lender relies on the accountant's representation
• ✦VOE-only programs: W-2 salaried borrowers; verification of employment confirms salary; no returns or pay stubs needed
• ✦1099-only loans: 12 to 24 months of 1099s; expense factor of 10-25% applied; ideal for independent contractors
• ✦DSCR loans for investors: no personal income documentation at all; qualification based on property cash flow

Typical Program Requirements

Most non-QM lenders require a 620 FICO minimum, with better pricing available at 680 and above. LTV limits run up to 85% on bank statement programs for primary residences and 75-80% for investment properties. Reserves of 3 to 12 months PITI are standard. The rate premium over comparable conventional ranges from roughly 1.5% to 3% depending on program and FICO.

Ideal Borrower Profiles

The borrower who benefits most has strong cash flow but a tax return that understates it through legal deductions. Self-employed borrowers with large Schedule C write-offs, real estate investors with depreciation, gig economy workers without clean W-2 history, and consultants with irregular 1099 income are all natural fits. The non-QM lender looks past the tax return to the actual cash moving through the borrower's accounts.