Comparing Stated Income and Full Doc Loans

Most residential and commercial loans can be categorized as either full documentation or stated income loans.  The differences between the two loan types, though few, can have a great effect on everything from interest rate, payment amount, and length of the loan.

The major difference between a full documentation (Full-Doc) loan and a stated income loan lies in the ability of the borrower to verify their income.  Income is generally the most important piece of information on a loan application as it tells the lender the borrower's ability to repay the potential loan.

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