What is Stated Documentation? - Definition

What is Stated Documentation? - Definition
Stated Documentation can be used for both self employed or w2 wage earner’s. This documentation type is generally used because the borrower is not able to prove

their income using traditional methods. Programs may differ based on credit, the type of employment, and whether or not the borrower can prove assets. Generally the lender will look to prove a two year employment history, and that the income stated is reasonable. This kind of documentation is considered to be a higher risk to the lender dictating not as favorable terms as a borrower who can verify their income.