BiggerPockets

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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For more business and real estate finance articles read my column at the examiner here.