Mortgages without documentation do not require income verification by the borrower; instead, they provide lenders with a statement that they can repay the loan. Documentary mortgages are usually not granted to people who do not have a regular source of income, including those who are self-employed. A mortgage without documents is often referred to as a mortgage without income verification. As the name implies, this type of loan does not require a lender to verify how much you earn. Sometimes they are also called NINJA mortgages, which stands for No Income, No Job or Assets.
A mortgage without documents is also called a mortgage without income verification or a stated income loan. It requires less paperwork for approval and often closes faster than a traditional loan. It's often a good choice for self-employed borrowers who have income that doesn't meet standard loan requirements or who have a different way of filing tax returns. Most other banks and credit unions do not offer these types of loans because it is difficult to package and sell them to investors in the secondary market. Undocumented, low-documentation loans make homeownership more accessible to non-traditional borrowers and have a quicker underwriting process, but usually entail higher borrowing costs.
Lenders were asked to document the borrower's ability to repay the loan, and investors had little interest in buying mortgage-backed securities for loans that Fannie Mae and Freddie Mac would not support. Take the first step in the application process and see if you can prequalify for a home loan by visiting the Quontic website today. All of these scenarios can complicate documentation of your income, making the simplicity of a loan without verification ideal. These loans can be used to refinance a home, purchase investment properties or also serve as a mortgage for an owner-occupied home. Additional consumer protections make loans without current documents a viable option for people with non-traditional incomes or those with complicated tax returns.
Because income is not guaranteed, lenders take special care to check the borrower's earnings history, the stability of their income, the financial soundness of their business, and even the demand for the type of service or product their company offers. You are more likely to find them through a portfolio lender, and in some cases they are called a bank statement loan. Trulia — No medical or stated income loans are returning and this is huge for self-employed borrowers. Mortgage loans without documents were created for borrowers with non-traditional sources of income and other lenders have denied them, simply because of lack of paperwork. A mortgage without proof of income is a mortgage loan that does not require standard income documentation (including payment stubs, W2 forms, or tax returns) for approval. In the past, stated income mortgages* were mortgage loans that did not require income verification or documentation.
If you were previously unable to obtain a traditional mortgage due to strict documentation requirements, a low-documentation loan could help you qualify for a loan. No income verification loans are becoming increasingly popular among self-employed borrowers who may have difficulty providing proof of their income. These types of loans provide an opportunity for those who may not qualify for traditional mortgages due to their unique financial situation. They can also be beneficial for those who want to purchase an investment property or refinance an existing mortgage. No matter what your situation is, it's important to understand all your options before applying for any type of loan. Be sure to research all available options and speak with an experienced lender before making any decisions.