Searches for “stated income mortgage programs” usually point back to the pre-2008 no-doc loans, and those are gone. The CFPB’s ability-to-repay and qualified mortgage rules under Regulation Z require lenders to make a reasonable, documented determination that you can repay. What replaced stated income is Non-QM alternative-documentation lending: loans that verify income through bank deposits, 1099s, rental cash flow, or assets instead of W-2s and full tax returns.
Duane Buziak (NMLS #1110647) is an independent wholesale broker who works with lenders such as A&D Mortgage, Angel Oak Mortgage Solutions, Arc Home, Acra Lending, Deephaven, and FNBA. The seven strategies below show self-employed borrowers and investors how to qualify, and why comparing several lender matrices on one scenario matters. Duane is a broker with wholesale access to these lenders, not an affiliate of any of them.
1. Bank Statement Loans
Suppose a self-employed contractor writes off heavily. Her tax returns show modest net income, but her business account received steady deposits all year. A bank statement program calculates income from 12 to 24 months of those deposits, usually applying an expense factor to business accounts, so the qualifying figure can sit well above the tax-return number. The mechanism is simple: the lender is measuring cash flow the business actually produced rather than what remained after deductions.
Non-QM lenders commonly associated with alternative-documentation lending include A&D Mortgage, Angel Oak Mortgage Solutions, Arc Home, and Acra Lending. Their guidelines on expense factors, statement months, and reserves differ, and those details should be confirmed per scenario.
- Gather 12 to 24 months of consecutive statements for the account you will use.
- Keep business and personal accounts separate, and label any unusual deposits.
- Ask Duane for a broker comparison of Non-QM lenders on your scenario.
The common mistake is mixing personal transfers into business deposits. Moving money between your own accounts or depositing a loan inflates the total, and underwriters will strip it out, sometimes leaving a muddy picture that costs time. Source and explain large deposits up front.
To measure success, compare the qualifying monthly income against your tax-return figure, then look at the resulting debt-to-income ratio (DTI). If the gap is large and DTI lands in range, the program is doing its job.
2. 1099 or P&L Programs
Some borrowers do not have a long, deposit-heavy business account but do have clean paper income. Imagine a commission-based consultant who recently moved from W-2 employment to 1099 contract work. Two years of tax returns would blend old and new income, so a lender using 1099s plus a profit and loss (P&L) statement can reflect her current earnings instead.
A P&L is a statement of revenue and expenses over a defined period. Programs differ on who may prepare it and how long you need to have been self-employed, so check each lender’s minimum self-employment history before choosing.
- Collect your 1099s for the relevant period.
- Have a CPA or licensed tax preparer produce the P&L.
- Confirm each lender’s required history and preparer rules before you commit.
The classic error is submitting a self-prepared P&L when the program requires a third-party preparer. That can mean restarting the documentation and losing a rate lock window. Ask the question first.
Measure two things: whether the stated P&L income reconciles with your actual deposits, and the DTI that results. Income on paper that your bank account does not support invites underwriting questions.
3. DSCR Loans for Investors
Debt service coverage ratio (DSCR) loans qualify the property, not the person. The lender compares monthly rent to the full housing payment (principal, interest, taxes, insurance, and any association dues, together called PITIA) and does not verify personal income. For an investor with many properties or heavy write-offs, that removes the usual income bottleneck.
A worked illustration, not a quote: a property rents for $3,000 a month and PITIA is $2,500. DSCR = $3,000 / $2,500 = 1.20. Many DSCR programs set a minimum ratio, and some allow lower ratios with pricing adjustments. The minimum varies by lender, so confirm it for your scenario.
- Get a market rent estimate or a signed lease.
- Calculate PITIA with realistic tax and insurance figures.
- Confirm the lender’s minimum DSCR and maximum LTV.
- Plan for the down payment and reserves.
The common mistake is using optimistic rent. The appraisal includes a rent schedule, and if it comes in below your number, your DSCR drops and so can your approved leverage. Use conservative figures from the start.
Track the DSCR ratio, the LTV, and reserves expressed in months of PITIA. Those three numbers usually determine pricing and eligibility.
4. Asset Depletion Programs
Borrowers with significant savings but little current income, such as retirees or people between businesses, can qualify by converting liquid assets into a calculated monthly income. The lender divides eligible assets by a set number of months to produce that figure, and the divisor is lender-specific, so it must be verified per program.
Illustration: a retiree holds $1.2 million in eligible assets and has little pension income. If a lender used a hypothetical 84-month divisor, the calculation would give about $14,286 per month ($1,200,000 / 84). That divisor is purely for arithmetic; real figures vary and need confirmation.
- Document eligible assets with recent statements.
- Ask which asset types count and at what percentage.
- Compare divisors across lenders, since a shorter divisor produces more income.
The mistake to avoid is assuming retirement accounts or business assets count at full value. Lenders often discount them, and funds needed for the down payment and closing typically cannot also be counted as income-producing assets.
Measure the calculated monthly income and the DTI it produces once your proposed payment and other debts are included.
5. Physician Loans
Physician loans are an active program through Duane Buziak, built for eligible medical professionals whose current income does not yet reflect their earning power. The mechanism is contract-based qualification: a signed employment contract can support income before the first paycheck, and terms are often more flexible around student debt and down payment than standard guidelines.
Illustration: a resident with a signed attending contract and significant student loans wants to buy before the start date. Under a standard approach, the resident income and loan balances might block approval. A physician program evaluates the contract and treats the student loans according to program rules.
- Provide the employment contract.
- Gather student loan documentation, including repayment status.
- Show proof of licensure.
- Confirm eligibility rules with the lender before choosing.
The common mistake is assuming every lender defines “physician” the same way or offers the same down payment flexibility. Eligible professions, start-date windows, and loan limits vary.
Measure DTI with the student loans treated as the program specifies, and the actual down payment required.
6. Pre-Application Readiness
Non-QM pricing is tiered. Credit score, LTV, and reserves each place you in a bracket, and moving up one bracket can change your price more than any documentation choice. Preparation before applying is therefore a financial strategy, not just paperwork.
Illustration: a borrower sits a few points under a score threshold because of a high card balance. Paying the card down before the application could move the score into the next tier and improve pricing. Whether any specific change helps depends on the lender’s matrix.
- Request a pre-qualification with Duane Buziak, which has no credit impact.
- Ask him to identify the nearest tier thresholds for score, LTV, and reserves.
- Close small gaps: pay down balances, add reserves, or adjust the down payment.
The mistake is applying immediately and getting a hard credit pull before you know which tier you will land in. You then lose the chance to improve the result first.
Measure your score, LTV, and reserve months against the next pricing tier. If a small change crosses a line, that is where to focus.
7. Broker Comparison Across Wholesale Lenders
No single lender’s matrix is the whole market. One may be flexible on expense factors, another on credit events, another on property type. An independent broker can run one scenario across several wholesale lenders and show you the differences side by side, which is something a borrower calling a single lender cannot get. Duane Buziak works with a broad roster that includes UWM, PennyMac, Newrez, A&D, Angel Oak, Arc Home, Acra, Deephaven, Change Lending, Champions Funding, and FNBA, among others.
Illustration: the same bank statement scenario could produce different documentation rules and pricing across lenders. Verify lender specifics before relying on any of them.
- Give the broker one complete scenario: income type, credit, property, down payment, and timeline.
- Request side-by-side options.
- Compare rate, fees, documentation requirements, and prepayment terms.
The common mistake is comparing only the rate. Points, prepayment penalties, and reserve requirements can outweigh a small rate difference.
Measure total cost over your expected hold period and the number of lenders actually compared.
Worked Example and Lender Comparison
This illustration is not a quote or rate offer. A self-employed borrower has 12 months of business deposits totaling $216,000 and a lender applying a hypothetical 50% expense factor. Qualifying income is $108,000 per year, or $9,000 per month. If the proposed housing payment is $3,200 and other debts are $800, DTI is $4,000 / $9,000, about 44%. Tax returns showing $48,000 of net income ($4,000 per month) would have produced a DTI near 100%, which shows why documentation type matters. For context on how documented income is treated in agency lending, see Fannie Mae’s income guidance, and for general rate context see Freddie Mac’s Primary Mortgage Market Survey, which reports weekly averages and changes over time. Non-QM pricing is generally different from agency pricing.
The table summarizes the niches associated with these lenders. Guidelines change, so Duane confirms current specifics per scenario.
| Lender | Commonly associated niche | Typical strategy fit |
|---|---|---|
| A&D Mortgage | Non-QM, alternative documentation | Strategies 1, 2, 3 |
| Angel Oak Mortgage Solutions | Non-QM, alternative documentation | Strategies 1, 2, 3 |
| Arc Home | Non-QM, alternative documentation | Strategies 1, 2, 3 |
| Acra Lending | Non-QM, alternative documentation | Strategies 1, 3, 4 |
| Deephaven Mortgage | Non-QM, alternative documentation | Strategies 1, 3 |
| FNBA | Flexible manual-underwrite scenarios | Unusual scenarios |
Because some of this is “commonly associated” rather than guaranteed program detail, treat it as a starting list for a conversation, not a promise of eligibility.
Frequently Asked Questions About Stated Income Mortgage Programs
Do stated income mortgage programs still exist?
No, true stated income loans ended after the ability-to-repay rule. Non-QM alternative-documentation loans are the modern equivalent, and they still verify your capacity to repay.
Can I get a mortgage without W-2s or tax returns?
Yes, in many cases. Bank statements, 1099s, a CPA-prepared P&L, rental income, or assets can substitute, depending on the program.
Does A&D Mortgage offer bank statement loans?
A&D is among the lenders associated with Non-QM and alternative-documentation lending. Duane confirms current program details for your scenario.
Can I get Angel Oak Mortgage Solutions pricing through a broker?
Yes. Duane Buziak is an independent broker with wholesale access to Angel Oak’s programs, and is not affiliated with the lender.
Does Arc Home do DSCR loans?
Arc Home is associated with Non-QM lending. Duane verifies whether a DSCR program fits your property and scenario.
Is Acra Lending a good fit for self-employed borrowers?
Acra Lending is associated with alternative-documentation loans that self-employed borrowers often use. Fit depends on your documents, credit, and property.
Are Non-QM rates the same as conventional rates?
No. Non-QM pricing usually differs from agency pricing. Compare against the weekly benchmarks in the Freddie Mac survey for context, and ask for scenario-specific pricing.
What is asset depletion income?
It is monthly income calculated by dividing eligible assets by a lender-set divisor. Divisors and eligible assets vary by lender.
Are physician loans available through Duane Buziak?
Yes, it is an active program. Eligibility and down payment terms depend on the lender, so Duane confirms them before you proceed.
Does pre-qualification with Duane Buziak affect my credit?
No. Pre-qualification with Duane has no credit impact, which lets you see where you stand before a hard pull.
Where to Start, and How to Put the Seven Together
Begin with strategy 6. A pre-qualification shows your tier position and the small gaps worth closing before anything is pulled. Then match your documentation type, strategies 1 through 5, to how you actually earn: deposits, 1099s, rental cash flow, assets, or a physician contract. Finally, use strategy 7 so Duane can run that scenario across wholesale lenders and show you total cost, not just a rate.
Your dream home is within reach. Discover how wholesale mortgage rates can put more money back in your pocket while you secure the financing you need. Get your personalized rate estimate today with no credit impact and see exactly what you qualify for with the Mortgage Maestro’s expert guidance. Call Duane Buziak at 804-212-8663. Licensed in VA, FL, TN, GA, DC, NC, SC, and MD.