Understanding Stated Income Loans: What You Need to Know

January 23, 2025

Flexible Financing Explained

For real estate investors and business owners, access to flexible and efficient financing can make or break an opportunity. Among the many financing options available, stated income loans stand out as a versatile solution designed to accommodate unique circumstances. At Re Funding Source, we specialize in offering creative loan solutions, including stated income loans, to help clients achieve their financial goals. In this article, we’ll explore what stated income loans are, how they work, and why they might be the right choice for you.

What Are Stated Income Loans?

Stated income loans are a type of asset-based loan where the borrower’s income is stated but not verified through traditional means, such as pay stubs or tax returns. Instead of focusing solely on the borrower’s income documentation, lenders evaluate the value of the property or assets being used as collateral. This makes stated income loans a practical choice for individuals who may not have conventional proof of income but still possess the financial means to repay the loan.

Common borrowers of stated income loans include:

  • Self-employed individuals
  • Freelancers and contractors
  • Small business owners
  • Real estate investors
  • Those with fluctuating income or unconventional financial profiles

How Do Stated Income Loans Work?

Stated income loans prioritize the value and cash flow potential of the property being financed. Borrowers “state” their income on the application, and the lender evaluates their ability to repay based on other factors, such as:

  • The appraised value of the property
  • The borrower’s credit score
  • Debt-to-income (DTI) ratio
  • Potential rental income or cash flow generated by the property

The focus on collateral and overall financial health allows stated income loans to offer a more streamlined approval process compared to traditional loans. This flexibility is particularly beneficial for real estate investors looking to secure funding quickly.

Benefits of Stated Income Loans


1. Fast Approval and Funding

Traditional loans often involve lengthy underwriting processes, requiring detailed income verification and extensive documentation. Stated income loans, by contrast, prioritize speed and efficiency, allowing borrowers to close deals faster.


2. Flexibility for Non-Traditional Borrowers

Self-employed individuals or those with fluctuating income may find it challenging to qualify for conventional financing. Stated income loans offer a viable alternative by considering the borrower’s overall financial profile.


3. Asset-Based Focus

These loans are centered on the value of the collateral rather than solely on income documentation. For real estate investors, this means they can leverage the value of their properties to secure financing.


4. Opportunity for Growth

Quick access to funding enables borrowers to seize time-sensitive investment opportunities, such as fix-and-flip projects or commercial property acquisitions.

Why Stated Income Loans Are Ideal for Real Estate Investors

Real estate investors often face challenges when trying to secure financing through traditional channels. Banks and conventional lenders require extensive documentation, which can delay the loan process. For investors juggling multiple projects or working under tight timelines, this delay can mean losing out on lucrative opportunities.



At Re Funding Source, our stated income loan programs are tailored to meet the needs of investors. With loan amounts ranging from $50,000 to $2 million, competitive rates, and a streamlined approval process, we provide the flexibility and speed needed to keep your projects moving forward.

Considerations Before Applying

While stated income loans offer numerous advantages, it is essential to consider the following:

  • Higher Interest Rates: Since these loans involve less income verification, they may come with slightly higher interest rates to offset the lender’s risk.
  • Down Payment Requirements: Lenders may require a larger down payment to ensure the borrower has a stake in the property.
  • Credit Score: Although stated income loans are flexible, maintaining a good credit score will improve your chances of approval and favorable terms.

Partnering with Re Funding Source

At Re Funding Source, we understand the unique challenges faced by real estate investors and business owners. Our stated income loan programs are designed to provide the flexibility, speed, and support you need to achieve your financial goals. With extensive experience in creative financing solutions, we are committed to helping you navigate complex loan scenarios with ease.



Whether you are looking to fund a new property purchase, refinance an existing loan, or secure working capital, Re Funding Source is your trusted partner. Contact us today to learn more about our stated income loan options and take the first step toward realizing your investment potential.

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