Stated income loans have a bad reputation due to their abuse that contributed to the housing crash. The backlash from the Dodd-Frank Act to do away with these alternative loan types left non-traditional homebuyers without any options, which is really unfair. Not everyone fits into cookie cutter guidelines. Hardworking self-employed people and investors who risk their own capital should not be penalized for the bad actions of a few! Recognizing the gap in the market, some banks and lenders decided to restructure the programs and provide these loan types again within Dodd-Frank rules. These are not the toxic “liar loans” from years past, they are fully compliant with federal law so that both the borrower and lender are protected.