Like many of our answers here at Bankapedia, the answer is neither a yes or no. When the market was strong and banks more lenient, yes you could lie about your income when stating it. Traditionally banks would use Salary.com or sometimes their own internal database of average incomes per profession per a given geography. When the market was at its height almost half of all mortgages were stated. Partly because they were easier to process, partly because borrowers want to qualify for a loan that their actual income wouldn't allow.

As the market weakened and stated loans were given a large share of the blame, they were either done away with or much more heavily scrutinized. If you plan on stating your loan in the current market, you are going to want to be relatively close to what you actually make. Additionally be prepared to put a lot of money down. Banks are not going to take the chances they once did.

Mark my words, stated loans will make a comeback. As the market returns and defaults dry up, stated loans will start to re-surge in popularity. If your LTV is low enough, the risk to the bank is minimal. Even if you default, they can flip the property and not lose on the deal.