Stated Income / Stated Asset Mortgage - SISA


DEFINITION of 'Stated Income / Stated Asset Mortgage - SISA'

A type of reduced documentation mortgage program which allows the borrower to state on the loan application what their income and assets are without verification by the lender; however, the source of the income is still verified.

BREAKING DOWN 'Stated Income / Stated Asset Mortgage - SISA'

SISA loans usually fall into the Alt-A classification, and may carry a higher interest rate than a prime mortgage. Self-employed borrowers often use SISA loans because their tax returns might not reflect that actual cash flow they have available to pay their mortgage. Other borrowers might use a SISA loan because their income comes from sources which are hard to document (such as tips in the food service industry). Some lenders may require the borrower to sign a form authorizing the lender to obtain a copy of the borrower's tax returns from the IRS should the borrower default on the mortgage.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Risk

    The chance that an investment's actual return will be different ...
  3. No Income / No Asset Mortgage - ...

    A type of reduced documentation mortgage program in which no ...
  4. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  5. Mortgagor

    An individual or company who borrows money to purchase a piece ...
  6. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
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