Stated income lending has evolved significantly from its pre-2008 reputation. Modern stated income programs for apartment investors are structured, responsible, and designed for self-employed borrowers and investors whose tax returns do not reflect their true financial strength. Here is what you need to know to work with stated income lenders effectively.
Modern Programs
Today's stated income loans are structured and responsible, built for investors whose tax returns understate income.
No Tax Returns
Qualify without submitting W-2s, 1040s, or personal bank statements -- property income drives the approval.
Self-Employed Friendly
Ideal for business owners and investors who use legitimate deductions that compress reported income.
Competitive Terms
Stated income does not mean subprime -- rates and terms are competitive for qualified borrowers.
Investment property financing is a powerful tool for building rental income wealth, but self-employed investors and those with complex tax situations face a common barrier: their tax returns don't reflect their actual financial capacity. Stated income lenders solve this problem by qualifying borrowers on property income rather than personal documentation.
Stated income programs are the best option for investors who don't have W-2s, have high deductions that compress reported income, or simply prefer to keep personal financial records private. DSCR programs accept credit scores from 620-660, and stated income programs can close in approximately 3 weeks vs. 45-60 days for conventional apartment loans.
What Is a Stated Income Lender?
A stated income lender is a financial institution that offers investment property loans without requiring traditional income documentation like W-2s, 1099s, or tax returns. Instead of verifying your personal income through employer records, they evaluate the property's rental income potential and your credit profile to determine loan eligibility.
What Types of Stated Income Loans Exist?
There are several types of stated income loans depending on how income and assets are documented:
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Stated-income, stated-asset loans: SISA loans didn't require verification of income or assets, but they became significantly risky for most lenders. As such, they are no longer available.
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Stated-income, verified-assets loans: A SIVA loan will take a statement of your income but verify that by reviewing your bank statements, hence they are referred to as "bank statement loans."
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No-income, verified-assets loans: If you don't have the income to add to your application but you do have assets the lender can verify, you might be able to qualify for a NIVA loan.
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No-income, no-assets loans: Almost exclusively for investment property financing, NINA loans are made based on your rental income projections, so they don't require income or assets.
While every lender will have different credit and asset requirements for most loans, NINA loans are the only loans you'll be able to find if you only have rental income to support the loan.
Stated income lending bridges the gap between what you earn and what your tax returns show
Finance Your Apartment Investment
From duplexes to large multifamily — our apartment lending programs qualify on property income, not your personal tax returns. Competitive rates and flexible terms.
What Do You Need to Know Before Working With a Stated Income Lender?
Three factors determine your stated income loan experience: down payment requirements (typically 20-25%), interest rate structure (investment property rates run 0.50-0.75 points above primary residence rates), and the documentation method you'll use to support the loan application.
1. You will need capital for down payments.
Regardless of the stated income loan type, you'll need cash on hand for a down payment. Multifamily properties with 5+ units typically require 25-30% down payment for conventional financing. Our DSCR programs offer up to 80% LTV on apartment buildings, which means a 20% minimum down payment in most cases.
If you already own investment properties with built-up equity, a cash-out refinance can fund your next down payment -- creating a compounding growth cycle without additional out-of-pocket capital.
2. Rates are competitive for qualified borrowers.
Modern stated income loans offer competitive rates that reflect the borrower's credit profile and property quality. Unlike short-term bridge loans with 12-24 month terms, our stated income programs offer up to 30-year amortization with 3, 5, 7, or 10-year fixed rate periods -- giving you long-term payment stability.
The rate premium over conventional financing is modest, and for many investors, the time saved by avoiding months of documentation collection more than offsets any rate difference.
3. Property income drives your qualification.
With our no-ratio DSCR loans, the property's rental income is the primary qualification factor. You'll want to research the rental market where your property is located to provide accurate income projections. Current lease agreements or market rent comparables from an appraisal support your application.
With NINA investment loans, even vacant properties can qualify based on projected rental income. This is ideal for investors acquiring value-add opportunities where the current owner hasn't maintained occupancy.
How Do You Find the Right Stated Income Lender?
Finding the right stated income lender requires matching your investment strategy to the lender's programs. Most commercial banks don't offer stated income apartment loans, so you'll want to work with specialized multifamily lenders who understand property-income-based underwriting. Conventional lenders also cap at 10 financed properties under Fannie Mae guidelines -- DSCR lenders have no such limit.
Narrow down your lender search with these three steps:
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Determine which rental loan product fits your needs: Not every lender offers every stated income loan type. If you want the fastest path with the least paperwork, our no-ratio DSCR loans require no W-2s and close faster than traditional programs.
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Prepare your property documentation: Gather the property's rent roll, operating expenses, and market rent comparables. This is the information lenders actually need for property-income-based underwriting -- not your personal tax returns or bank statements.
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Research the rental market: Strong rental income projections supported by market data improve both your approval odds and your loan terms. If you're investing in the short-term rental market, research comparable Airbnb revenue in your target area.
Ready to Work With a Stated Income Lender?
Skip the tax returns and W-2s. Our stated income programs qualify you based on property cash flow, not personal income documentation. Self-employed investors and portfolio holders close faster with less paperwork.
How Do You Choose the Right Stated Income Lender?
Apply to your top two or three lenders and compare the actual offers you receive. Evaluate APR, loan term, amortization structure, prepayment penalties, closing costs, and speed to close. Stated income programs can close in approximately 3 weeks vs. 45-60 days for conventional apartment loans -- that speed advantage can determine whether you win a competitive deal.
Choosing the right stated income lender is about more than one transaction. A strong relationship with a lender who understands your portfolio strategy creates a repeatable process for growth. Call us at 888-375-7977 or apply online to get started.
What You Need for a Stated Income Loan
Looking for a stated income lender that can work with your investment needs? Rental Home Financing has loan options that work for your investment property -- apply online or call 888-375-7977 to discuss your situation with a specialist.