No Income Verification
These types of loans were very popular a few years ago. They provide the opportunity for a borrower with a good credit score, to purchase a mortgage without verification of income. It is important to note that these loans are higher risk! As a result, some lenders have removed No Income Verification loans as mortgage solutions.
Who Qualifies for a Stated Loan?
Typically, these loans are only available to the self-employed borrower and require a significant down payment (35%). Additionally, the credit score of the borrower must be impeccable.
If credit is good, these loans are offered at very attractive interest rate. For example, if interest rates are around 5%, no income verification loan rates may be up to 5 -5.25%, costing the borrower just a little bit more to acquire.
Tips for Getting a No Income Verification Loan
- Make sure that your declared income is reasonable in comparison to the mortgage size you want
- Even if lenders don’t want you to prove your income, they do want it to be reasonable and will often ask for proof that no income taxes owed.
- Make sure your credit is top notch
- Banks are choosing to waive the review of your income so your credit has to be sparkling clean. Do whatever you can to make sure your credit is top notch.
- Examine the option of a traditional mortgage loan
- As noted above, a traditional mortgage will offer lower monthly payments. If you can qualify for a regular loan, choose that route!
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