Home Finance Qualify For No Documentation Mortgage Loans with an Easy and Quick Process

Qualify For No Documentation Mortgage Loans with an Easy and Quick Process

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A great credit, 740 or higher, is required to qualify for a no documentation home loan

Stable employment with steady income is an important prerequisite to qualify for a mortgage. But, when you do not have a pay stub to show as proof, traditional loans are hard to qualify for. No documentation mortgage loans are especially useful for such people as lenders will approve loans on the income that they state.

In a no documentation no doc mortgage, you don’t have to produce any documents. The lenders will base their approvals solely on your credit scores and the income you tell them. Therefore, to qualify for a no documentation home loan, it is essential that you have a great credit, 740 or higher.

Anyone who enjoys a great credit but is not not able to provide proofs of income can qualify for a no documentation home loan. Self-employed people typically choose these loans as they do not have pay stubs to produce. Similarly, people who earn their livings largely through bonuses or tips also turn towards this option. At times, even the super-rich also opt for this loan option to maintain privacy of their earnings and wealth.

There are various types of no documentation mortgage loans. You may choose a low-doc loan wherein the paperwork required is quite less. For instance, your tax returns for the last two years shall suffice, and you may not need to submit your pay stubs. However, a true no documentation no doc mortgage does away with the need of paperwork completely.

Nothing comes for free. And that holds true for no documentation mortgage loans and no documentation mortgage refinance as well. These loans come at higher interest rates. This is because lenders like to protect themselves against the risks in case the customer inflates the stated income. The interest rates vary from one lender to the other. So, it is wise to shop around for competitive rates. Another method that lenders employ to reduce the risks is the requirement of a large down payment, generally to the tune of 40% of the purchase price.

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Remember no documentation mortgage loans are not as readily available as they were before the housing crisis in 2007. A research from FirstAmerican CoreLogic has revealed that in 2006-2007, no documentation mortgage loans constituted nearly 40% of all mortgage loans. The figure dropped to a meagre 8% in 2010. Therefore, you will need to find a reliable lender that offers true no documentation no doc mortgage.

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