Stated Income / Stated Asset Mortgage Definition

A stated income / stated asset mortgage is a type of mortgage where the potential homebuyer is allowed to state income and assets without full verification-only the source of income is verified. SISA mortgages are usually classified in the Alt-A category and bear higher interest rates than conventional mortgages. SISA mortgages might be used for individuals whose incomes are difficult to verify. SISA loans are sometimes colloquially referred to as "liar’s loans" because the borrower presumably can state any income needed to qualify for the loan.