What Replaced True Stated Income Loans
True stated income lending — where a borrower declared income with no verification at all — ended with the Dodd-Frank Act and the CFPB Ability-to-Repay rule in 2014. Any lender offering a genuinely no-verification consumer mortgage today is not operating legally.
What survives is a family of alternative-documentation programs that verify income through means other than tax returns. The industry still markets these as "stated income," which causes confusion, but every one of them documents ability to repay.
Modern Stated Income Alternatives in California
Bank statement loans use 12 or 24 months of personal or business deposits with an expense factor applied. P&L loans use a CPA-prepared profit and loss statement. Asset depletion converts liquid assets into a qualifying income stream. DSCR loans skip personal income entirely and qualify the rental property on its own cash flow.
For business-purpose investment loans, the rules differ. Ability-to-Repay applies to consumer mortgages on owner-occupied property — a DSCR loan on a pure rental sits outside it, which is why investor programs can qualify on the asset alone.
Expect 10% to 25% down depending on program and occupancy, credit from roughly 620 to 680, and rates 1% to 3% above conventional. The right program depends entirely on how your income actually appears — deposits, margins, assets, or rents.
Frequently Asked Questions — Stated Income Loans
What is a stated income mortgage in California?
True stated income lending — declaring income with no verification — ended with the Dodd-Frank ability-to-repay rule in 2014. What the industry still calls stated income today is a family of alternative-documentation programs: bank statement, P&L, asset depletion and DSCR loans. Each verifies ability to repay, just without tax returns. Expect 10-25% down, credit from 620-680, and rates 1% to 3% above conventional.
What credit score do I need for stated income loans?
Most stated income mortgage programs in California look for 620-680+. Credit tends to affect your pricing more than your eligibility — a stronger score usually shows up as a lower rate rather than a different answer on whether you qualify.
How much down payment do I need?
A stated income mortgage in California typically requires 10-25% down. The exact figure moves with your credit profile, occupancy and property type — stronger files land at the low end of that range.
How long does closing take?
A stated income mortgage in California generally closes in 30-45 days. Appraisal turn times and how quickly you return requested documents are the two things that move that timeline most.
Can I use this program for an investment property?
A stated income mortgage is available for primary, second home or investment. Occupancy affects both pricing and down payment, so confirm the intended use up front — it changes the terms you are quoted.
Are rates higher for stated income loans?
Stated income mortgage rates run roughly 1% to 2% above a comparable conventional loan, which is the cost of documenting income a different way. Your specific number depends on credit, down payment, occupancy and the day you lock.
Do I need to verify my income?
For a stated income mortgage, income is verified through deposits, a P&L, assets or rents — true no-verification lending ended in 2014. This is the main way the program differs from a standard conventional loan, and it is usually the reason borrowers choose it.
Can I refinance later into a different program?
Yes. With a stated income mortgage the usual path is to refinance into conventional once filed returns support the income. Nothing locks you in — plan the exit when you take the loan rather than after.
What documents do I need to apply?
For a stated income mortgage you will need a government ID, credit authorization and property details, plus documents matched to the alternative path you use, not tax returns.
How do I get started?
Call (888) 703-1840 for a free stated income mortgage consultation, or use the form on this page. Pre-approval usually takes 1-3 business days, and there is no cost and no hard credit pull to find out what you qualify for.
Last updated: July 2026. Sources: FHFA, HUD, VA, CalHFA, CFPB, California DRE, California Association of Realtors. All loans subject to credit approval. Rates subject to change.
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Mortgage Education Written by Licensed Mortgage Professionals
Mortgage Guide California was created by licensed mortgage professionals to help California homebuyers and homeowners understand their options before they apply. This website itself is not a lender or a mortgage broker — it does not take applications, quote binding rates, or make credit decisions. The guides are written and reviewed by people who place loans for a living, and the site is sponsored and paid for by Save Financial, Inc., a California-licensed mortgage broker.
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Mortgage Guide California is an educational resource sponsored and paid for by Save Financial, Inc. All mortgage services, rate quotes, and loan applications are handled by Save Financial, Inc. (NMLS #377740, DRE #01875766), a California-licensed mortgage broker. Equal Housing Lender. All loans subject to credit approval.