Liar Financing 

The stated income loan is called the liar’s loan. Why? Well, you don’t have to provide any supporting documents to back up your claim. This is a might temptation for some people to lie about just how much they make and so on. If you feel the slightest temptation, don’t follow it. Lying on your application is fraud. You could go to jail. On a more practical level, you could be biting off more debt than you can afford. If you can’t legitimately qualify for a loan, there is probably a good reason.