When you apply for a mortgage loan or refinance, a lender will generally require a few things that prove your overall creditworthiness and ability to repay the loan on time. In addition to authorizing a credit check, you typically have to show proof of income, savings, assets, or all of these. However, this underwriting may pose a significant issue for anyone with a non-traditional source of income, like people who work on commissions or those who write off their income by claiming losses when filing their taxes. No-income verification mortgages can help you mitigate these issues for borrowers who have non-traditional income. Unfortunately, most people do not understand how to access these mortgages. No income verification loans are pretty simple to understand, especially if you have a professionally trained expert explaining them to you. In this guide, the Real Estate Funding Solution team will explain how these loans work and their types.
When applying for a no-income verification mortgage loan, you will not have to give all the paperwork most mortgage lenders require to prove your assets and income. These tend to include things like pay stubs, tax returns, and bank statements. Since these loans tend to require significantly less documentation, they are also known as no-documentation loans, no-doc mortgages, or simply no-doc loans. In case of no-income verification mortgage loans, the lender would take your word that the income you write on your application is accurate. It might also require you to show some proof of any assets you own or alternative documentation that helps demonstrate your overall ability to repay the loan. No-income verification mortgages tend to have a higher interest rate than regular mortgages. Even though these loans were typical in the early 2000s, they are now restricted to individuals with a high credit score, substantial assets, or both.
What Are The Types of No-Income Verification Mortgages?
Several kinds of mortgage options can help all potential real estate buyers who do not have proof of income. Below are a few common types of no-income verification loans:
SIVA: State Income, Verified Assets Mortgage
While you will not have to show any proof of income you declare on your application, you will have to explain all declared assets.
SISA: Stated Income, Stated Asset Mortgage
In this type of no-income verification loan, you can declare both your income and your assets without showing any verification of either.
NIVA: No Income, Verified Assets
In this form of loan, your lender will not take your income into account when finalizing whether they should approve your loan or not. The only thing they will consider is your assets.
NINA: No Income, No Assets
Here, the lenders will look at neither your assets nor your income and instead consider collateral and other non-income factors when finalizing whether to give you the loan.
Even though these types of loans were originally for well-qualified borrowers with sufficient but non-traditional sources of income, several irresponsible real estate lenders extended these loans to subprime borrowers in the early 2000s with very little income. There were several cases of borrowers who could not afford to repay their loans. The default rate skyrocketed, contributing significantly to the 2008 financial crisis. As a result, several regulators cracked down and passed minimum requirements that lenders must use to determine if borrowers can afford to take out a loan or not. If you can find a lender who can give you the loan, and even if you do not have a W-2 income, they will always ask you for verification that you can repay the loan. If you have any further queries regarding no-income verification mortgage loans or want to start assessing your options, get in touch with Real Estate Funding Solutions immediately!
Real Estate Funding Solutions Can Help You Get No-Income Verification Mortgages In No Time!
If you have questions about no-income verification mortgages or want to apply for one, we suggest you contact the Real Estate Funding Solutions professionals right away. Our team has years of on-field training and experience, enabling us to help you find the best deals possible. Moreover, our friendly and knowledgeable financing experts can guide you through the loan application process and ensure everything goes right. We will also assist you in gathering all the essential documents that show you can successfully repay the loan on time. Unlike many other firms, our experts will stay by your side until closing to ensure no issues are on the way. Want to find out more about how we can help? Schedule an appointment with our experts today – call on 855-913-8637, and we will be happy to help you finance your dream property.