No Doc Loan (No Documentation Loan)

The most simple choice, a true No Doc loan requires no employment, income, or assets to be stated on your loan application. Lender' do not verify any information beyond your credit profile and the value of the property. This is the product of choice if your asset or income is difficult to verify or if you simply do not want the "hassle" of traditional mortgage documentation. Your good credit, a decent property and we are done. This loan is best used for a self-employed people.

Another option would be to add your employment to the application. This program is frequently described as a "NINA" (No Income No Asset") loan. In this case, Lender will verify your employment, but again, no income or assets are on the application. If you are self employed, the business must be verified with a business license, written contracts, supplier invoices or similar documentation. If you are employed by a company, Lender will verify your employment but nothing else. This small bit of documentation will generally save you 0.125% on the interest rate.

Yet another option would be to have us verify your assets but not income or employment. Using this approach will require verifiable, relatively liquid assets of not less than 6 months of your PITI. Again, this bit of documentation will usually save you .125 on the rate. If your situation will allow you to verify both assets and employment, you are better served with the Stated or No Income Verification program. If there is an issue with your debt to income ratio, you may want to consider a No Ratio loan.

No Doc Mortgages are available for Single Family, Townhouse, some manufactured housing, and low rise condos. Some programs allow high rise condos 2-4 unit buildings, second homes, or investment properties but are slightly more expensive or require more equity. Allowable uses are for purchase or rate and term refinance. The programs will allow a "cash out" refinance but there are limitations on the allowable cash back. The fundamental thing to keep in mind with true NO Doc Mortgages is that the lender only has your credit profile and property to evaluate. If your situation allows verification of either employment or assets you will save some money because you have lowered the lenders risk. The choice is yours.

No Ratio Loan:

A No Ratio Mortgage is a useful option if you are carrying more debt than a traditional mortgage loan will allow. In traditional mortgage banking your debt to income ratio is one of the key factors in determining loan approval. Your debt ratio is calculated by dividing your total monthly payments by your monthly pre tax income. If your ratio is 40% or more, a traditional mortgage is very difficult without pristine credit and very substantial reserves. With a No Ratio Mortgage, no income information is included with the application so no ratio calculations are made.

No Ratio Mortgages are available for Single Family, Townhouse, some manufactured housing, and low rise condos. Some programs allow high rise condos 2-4 unit buildings, second homes, or investment properties but are slightly more expensive or require more equity. Allowable uses are for purchase or rate and term refinance. The programs will allow a "cash out" refinance but there are limitations on the allowable cash back.

Stated Income Loan:

Stated Income Mortgage Loans are the most commonly used and least expensive product in the reduced or no documentation suite of programs. A Stated Income Mortgage Loan is often the perfect choice if you have verifiable employment (self employment is fine) and assets but your verifiable income is just a little low for what you want to do. 

After a very thorough analysis of your debt and verified assets, Lender will assist you in determining the income to be stated on the application to meet the ratio calculation requirements. All other information on the application is verified. The Stated Income Mortgage is the least expensive product if it works for you. If not, a No Ratio or true No Doc mortgage but may be a better choice. The point is, with decent credit, I can guide you to the least expensive program which will work in your specific situation.

Stated Income Mortgage Loans are available for Single Family, Townhouse, some manufactured housing, and low rise condos. Some programs allow high rise condos 2-4 unit buildings, second homes, or investment properties but are slightly more expensive or require more equity. Allowable uses are for purchase or rate and term refinance. The programs will allow a "cash out" refinance but there are limitations on the allowable cash back.