Different types of no doc loans (low doc, stated income, no ratio loans) are available to meet the needs of various employment and income situations.

The more documentation you provide your mortgage lender (employment, income and credit history) the lower your interest rate may be. Many home buyers choose not to offer documentation for personal privacy reasons, and willingly opt for a higher interest rate. Yet, many of these home buyers have a healthy income, or savings, and a credit history. A No Doc (documentation) or Low Doc loan provides increased ease and privacy when getting a mortgage in exchange for a slightly higher rate.

Buyers that opt for a No Doc home loan are typically those who don’t prefer to have their entire life and financial history presented to the lender. For instance, they might be using an inheritance to secure a loan or have fluctuating income from owning their own business.

Ease is a big factor as well. With a No Doc loan, the borrower provides their name and social security number, along with information regarding the property being purchased. The rest is up to the lender.

The Three Main Types of No Doc & Low Doc Loans
No Doc loans require the least documentation and are for buyers with good credit scores. The buyer provides minimal information (usually social security number and general property information) and the lender does the rest. No Doc home loans are great for people who want maximum privacy.

Stated-Income (Low Doc) Loans
Stated-Income, or Low Doc loans, typically attracts people who work on a cash or commission basis - people who don’t draw a consistent salary.  The borrower will need to disclose earnings, usually for two years, and might need to show tax returns and bank statements.

No Ratio Loans
No Ratio mortgage loans are for borrowers who do not wish to disclose their income; therefore there is no debt-to-income ratio for the lender to consider. The No Ratio borrower has good credit and abundant assets that make up for the lender not considering the borrower’s income information. This loan can be a quick and easy process for borrowers that would have difficulty gathering documentation.

NINA LOAN
NINA Loans are for Borrowers who do not wish to disclose their income, employment or assets; therefore there is no debt to income ratio calculation. Borrowers do not list any Employment on the application or assets. The NINA borrower must have good credit. This loan can be a quick and easy process for borrowers that would have difficulty gathering documentation.
If you think a No Doc or Low Doc loan is right for your situation, call us today at 239-425-3410