Stated-income mortgage, also known as a no-income verification loan for real estate, allows individuals to qualify for a loan using non-standard documentation for income. While several lenders will ask you for your tax returns, no income verification mortgages consider several other factors, such as home equity, available assets, and overall cash flow. This makes it much easier for you to get approval. This is also true for self-employed individuals or those who rely on seasonal commissions.
What Do You Mean By A Non-income Verification Loan?
In the case of a non-income verification mortgage, a lender does not require applicants to document or prove a source of income. Such mortgages also go by other names like stated-income loans and alt-doc or no-doc loans. Nevertheless, these loans fall under the exact primary definition with only a few differences. There are four types of no-income verification loans in real estate, each of which comes with its requirements.
Stated Income, Stated Assets
This loan option can help if you have a significant income and assets, which may be challenging to document. When you apply for this type of loan, your lender will agree to accept the assets and income figures you provide, with no further documentation needed. It can be beneficial for small business owners who keep their assets in their business account and do not document their personal consumption with pay stubs, 1099 forms, or W-2 forms. If this is the case, you can use your bank statements from the past 12 to 24 months to calculate your business’s monthly cash flow instead of any other documentation.
Stated Income, Verified Assets
Such loans are perfect for you if a significant part of your income is complex to document, but you own several verifiable assets. These lenders will agree to accept your stated figure and verify all your available assets. A perfect example where such loans would be ideal is for an individual whose primary income is based on gratuities or times but who has a bank account under their name.
No Income, Verified Assets
These loans are for applicants with verifiable assets but an income that can’t be documented. In such a case, a lender will verify your assets and not take your income into account. A retiree who gets income via their retirement accounts might not have a lot of verifiable income. But their assets could be documented. Such individuals will benefit significantly from this loan.
No Income, No Assets
These loans are the best for individuals who cannot provide documents from assets or income with minimum requirements. These lenders base their approval solely on your non-income factors like collateral and others. People employed by a foreign company. And have their assets in a foreign bank may find it challenging to provide any documentation acceptable to lenders in the US. These loans can help you skip document translation and international asset transfers effortlessly.
Are No-Income Verification Loans Still Available?
No-income verification loans are available from lenders despite their downfall after the housing market crash of 2008. A lender who offers portfolio lending and is not held to qualified mortgage rules by government agencies. Such as Freddie Mac or Fannie Mae can help provide you with a no-income verification loan for real estate. These lenders use equity from investors to create such offerings. These include direct lenders, wholesale lenders, and even significant financial investment firms. However, most big banks and credit unions do not offer such loans. Since they can be complex to package and sell to investors in the secondary market. Only a handful of lenders are willing to commit this kind of capital.
Is a No-income Verification Loan Right for You?
No-income verification loans are worth looking into, especially if you have seasonal income streams, are self-employed, or have issues qualifying for a conventional loan. All these scenarios can make it difficult to document your total income, making the simplicity of no-income verification loans ideal. Nevertheless, individuals with insufficient income must never use such loans to hide their financial standing. You must apply for a no-income verification loan only if you can afford to make timely payments. If you want to learn more about a no-income verification loan for real estate, contact Real Estate Funding Solutions today!
Real Estate Funding Solutions Can Help Answer All Your Queries!
The experts at Real Estate Funding Solutions have years of training and on-field experience that can come in handy when dealing with a no-income verification loan. Our experts know what lenders need to approve your loan application, thanks to years of service. Besides helping you gather all necessary documentation, our experts will also stay by your side until the end to ensure everything goes as planned. Thanks to our fantastic connection with multiple lenders across the industry. We will ensure that you get only the best loan terms possible. Call our team today at 855-913-8637, and we will clear any doubts you may have regarding no-income verification loans for real estate.