Stated Income loans are mostly for self employed individuals, or those who would like to avoid gathering personal financial information. These kind of loans are generally structured at a higher rate and/or higher fees, however minimum disclosures and verifications are required. In addition, some lenders have less strict requirements concerning DSCR on these type of loan transactions.

 

Full Documentation loans are a little bit more work intensive and requires full disclosures of your financial ability for repayment. Nevertheless, the benefits of providing more detailed documentation and verifications are reflected throughout the pricing of the loan, rates and terms.