Full Doc
A full doc loan is one that requires that the borrower present all necessary documents, including income verification to be considered for the home loan. This type of loan usually offers lower rates because it is less risky for the lender. On the other hand, if you are self employed you may not have all of the required documents and should look into a stated income loan.

State Income
Stated income home loans allow those who are self employed or do not have documentation of earned wages to state a wage on the mortgage application and qualify for a mortgage based on that stated income. The advantages of a stated income home loan allow those who are self employed or do not have documentation of earned wages to state a wage and qualify for a mortgage based on that stated income. The benefits of a stated income loan are that the borrower does not need to verify income and approval is generally faster than with traditional home loans. The disadvantages of this type of loan are that interest rates and the required down payments are often higher than with traditional home loans.

When doing any type of financing, proof of employment and income are determined in qualifying you for a new loan.

There are two major ways of proving your work status and income:

Full Documentation:
- if you receive pay stubs and W2’s
- if you can prove your income through bank statements (usually average of 12 – 24 months)
- Tax returns ( if you are a 1099 employee)

Stated:
- if you are self employed and your income fluctuates dramatically
- if you are a wage earner, but your income limits your loan size
- if you want to streamline your process by not documenting or showing your income