When it comes to getting a mortgage, there are a few different options available. Two of the most common types of mortgages are no-income verification mortgages and stated-income mortgages. While they might sound similar, there are some key differences between these two types of loans.

A no-income verification mortgage, as the name suggests, is a type of mortgage where the borrower does not need to provide any documentation to verify their income. This means that the lender will not ask for things like pay stubs, W-2s, or tax returns. Instead, the lender will use other factors to determine the borrower's ability to repay the loan, such as their credit score, employment history, and other assets.

On the other hand, a stated income mortgage is a type of mortgage where the borrower does provide documentation of their income, but the lender does not verify that the information is accurate. In other words, the borrower "states" their income, and the lender takes their word for it. This type of mortgage is also sometimes referred to as a "liar's loan."

 Conclusion

While both no-income verification mortgages and stated income mortgages are designed for people with non-traditional sources of income, they are not the same thing. No income verification mortgage is riskier for lenders and may come with higher interest rates or other fees, while stated-income mortgages are riskier for borrowers and could lead to a foreclosure if you overstate your income. It's important to carefully consider your options and work with a knowledgeable lender to find the right mortgage for your needs.