'Stated income' mortgage loans
If you don't believe that your credit score is all that matters, check out this article on stated income mortgage loans:
For people whose credit is good enough, "stated income" loans work much like this. Consumers pay slightly higher interest rates for such loans, but bankers are making more of them than ever.
At the end of the refinancing boom in late 2003, lenders started looking for new ways to boost business, and stated income mortgages, and related "low documentation" loans, were one solution. Lenders learned over the past decade or so that credit scores are the best predictors of whether a borrower will pay back a loan, so stated income loans are not as risky as they might sound.
I'm not sure why you even have to tell the lender an income, because basically, they'll give you a mortgage based solely on your credit score (FICO score). Seems like kind of a contradiction to me: your credit score is high enough that they lender feels secure doing this, yet the borrower clearly would only seek this type of loan if their finances has some detail that might be riskier (like being unemployed). But note the key phrase in that quote: "Consumers pay slightly higher interest rates..."
Here are some other pages about stated income loans. NOTE: I have no idea how reliable they are:
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