A stated-income loan? Ask why
These are loans where you don't have to prove how much you make by submitting check stubs or W-2 forms to the lender.
If you have a regular job -- and lots of check stubs and W-2 forms that show how much you're paid -- you should be very worried if a mortgage broker suggests a stated-income loan.
In all likelihood, the broker knows you won't be able to borrow as much money as you want based on your true income.
Instead of telling you that, he's going to apply for a stated-income loan so that he can inflate your earnings and assets on the application.
You'll get all the money you want -- and the broker will get his fees and commissions.
But you'll also get a high-cost loan and far more debt than you can possibly repay. That's why "liar loans," as they've come to be called, are costing tens of thousands of families their homes.
Don't be one of them.
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