A no-doc mortgage loan is an extinct home individual bank loan that does not need mortgage financial lenders to papers the borrower’s revenue or resources. No-doc mortgages are illegal nowadays because they violate the requirement that Lenders must confirm the borrower’s ability to repay before approving a mortgage loan.

No-doc loans were also known as SISA loans (for Mentioned Income, Mentioned Assets) or NINA loans (for No Income, No Assets). In some situations, employment was also not verified (those loans were known as NINJA loans, for No Income, Job, or Assets).

The original concept regarding no-doc loans was to make home buys easier for business owners, who often had plenty of cash flow to make a payment but couldn’t paper their earnings in a conventional way because of all the tax write-offs available to them.

Qualifying for a conventional mortgage loan can be challenging if you don’t obtain a stable per month salary. If you are working as a freelancer or if you work in an industry in which a lot of your earnings come from tips or bonuses, you might not have the normal income statement that most lenders need to confirm your total per month income. You have an option, though, of no-doc loans, home mortgages that don’t need you to provide documentation verifying your salary. Just be prepared to pay a bit more for such loans.

For a conventional mortgage loan, debtors must prove their total per month salary by sending their Lenders copies of their last two income statement, two months of banking account statements and last two years of earnings tax returns. In a no-doc loan, though, debtors, in the simplest of situations, do not have to send their lenders any documents to confirm their revenue. Lenders basically approve a no-doc loan based on borrowers’ credit score ratings and stated income. To meet the requirements for such a loan, though, debtors will need high credit score ratings. Nowadays, most lenders consider credit score ratings of 740 or higher to be in the “good” to “excellent” range, so debtors seeking no-doc loans should have a score at least that high.

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