are stated income loans illegal 
stated loans or loans where you do not need to provide proof of your income are illegal today a stated loan is a loan in which you only state your income on your loan application the bottom linea liar loan is a loan in which the lender does not require proof that the borrower has met financial requirements instead the lender takes the borrower at their word when they provide information liar loans were once common among mortgage providers but now mortgage lenders must require more stringent proof the borrowers have met their criteria for credit score income and other factors 