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No Doc Mortgage Loans Help Maintain Privacy

April 27, 2010 By FPT Guy Leave a Comment

Being financially successful certainly has its perks. On the one hand, there is the comfort of always having what is necessary (and what may not technically be necessary), and on the other hand, there is the option of being able to afford ultimate discretion. Purchasing a home becomes much easier because, if the borrower is willing to pay, the paperwork is reduced immensely.

No doc mortgage loans allow customers to withhold information regarding earnings and profits in order to either preserve privacy or to avoid mountains of paperwork. People with various sources of income find out that this is the way to go for a hassle-free experience.

There are three different categories within no doc loans. Stated-income loans are designed for those that work in the restaurant business, or who draw commission at work as the main flow of income. It’s difficult to prove these things on paper, so the no doc mortgage loan can be a lifesaver for these people.

The next type is no-ratio mortgages. Basically, there is no way to determine rates by way of a ratio of debt-to-income, because the borrower does not report income at all. This could be because the borrower is actually going through a fluctuation of income due to a life change, or those that live off investments. Also, this applies to business owners that have money spread so far out that the task of gathering it all together would cost more than the difference. In the case where no income or assets are verified, the loan is called NINA. Minimal information is provided by the borrower to apply for this one. Identification and property value is basically all that is requested, along with a large lump sum for the down payment, of course.

All of these options are available to those that can prove they are good with money. This is done by providing a substantial amount of money for a deposit and showing that there is still enough to pay for a few months of payments. The credit score and report are examined by the lender before agreeing to a no doc mortgage.

There must be strong evidence that funds are handled properly in order for them to take the risk of a no doc mortgage loan on a person that isn’t offering up very much information. It is possible to hold onto privacy and still buy a house, but the price tag is hefty.

While these loans will get you a fast loan, other loans like the 125 home equity are on the opposite end of the spectrum, requiring moutains paperwork and are far more risky than a no doc loan.

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What Is A No Doc Mortgage?

September 28, 2009 By FPT Guy Leave a Comment

In order to qualify for a mortgage you usually need to have a decent credit score and at least two years worth of verifiable income.  However for individuals who are self employed, make most of their money off of commission, are living off investments or just want to have financial privacy, a no doc mortgage or no doc loans may be an option to consider.  Here is some more information on these types of mortgages.

No doc mortgages do not require you to disclose your income, although you will still be subject to a credit check and may have to produce other types of financial documents such as tax returns and profit and loss statements in some cases.  It’s basically a good credit mortgage loan, so if you’re needing a bad credit mortgage loan,  then a no-doc mortgage probably isn’t for you.  No doc mortgage loans do provide a way for individuals with insufficient income history or individuals who value their financial privacy to obtain mortgages.  However, no doc mortgage rates are higher than conventional loan rates.  A no doc mortgage provider may also require you  to put down a larger down payment and have a very good to excellent credit rating to qualify for a no doc mortgage loan.

A no doc home mortgage comes in three main forms.  There is the stated income mortgage which is most appropriate for self-employed individuals and those who primarily earn their living from commissions.  With a stated income no doc mortgage, the borrower must disclose two years worth of earnings.  They may use profit and loss statements or tax returns instead of W2 forms and pay stubs.  They still have to show income but is intended for individuals who may earn from unconventional or irregular earning sources.

A no ratio loan is appropriate for individuals living off of their investments.  With these types of no doc mortgages, the borrower isn’t required to declare their income.  However, the borrower will have to account for their assets such as the money they have in the bank, their investments, and any ownership in businesses.  The no doc mortgage rate on a no ratio loan can be anywhere from a half a point to 3 or more points higher than a conventional mortgage rate.

A NINA (which stands for no income/no asset) verification is a no doc mortgage loan for people with excellent credit who want to have the maximum level of privacy and are willing to pay for the privilege.  These loans require the least amount of documentation.  In order to qualify for a NINA, an individual’s credit score will need to be excellent and they will pay a high interest rate in exchange for their privacy.

In the aftermath of the sub prime mortgage crisis, no doc mortgage loans are not easy to find these days.  Many lenders have pulled back from offering them.  However, you may still be able to find one from some mortgage lenders and mortgage brokers.

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What Are No Doc Loans?

September 12, 2009 By FPT Guy Leave a Comment

If you are searching for no doc loans, then you know that they can offer you more privacy when trying to purchase a home, or get a loan for another reason. The trade-off of such privacy is often having a higher interest rate. Depending on what your employment situation may be, or what types of income you have, a no doc loan may be perfect for your situation.  Think of these as the complete opposite of stop foreclosure loans – where someone is really in such trouble that they’re about to lose their home.  Usually you’re in a really great position financially when going for the no doc type of loan.

Often times people who have more savings, a great credit history, or a very large income, opt to get no doc home loans in order to ease the process and to keep a lot of their assets, etc, private. Once again though, this will come at the expense of having a higher interest rate, but most people who go for a no doc home loan know this going into it. If you are considering such a loan, then make sure you know that you will be getting the loan or mortgage at a higher interest rate than normal.

In today’s economic times, not many mortgage companies are offering no doc mortgage loans. The few that are offering them require high qualification standards before you can be eligible for such a loan or these types of mortgages. Places that would have previously offered a no doc mortgage loan, no longer will (ie: Quicken Loans).

When trying to get no doc mortgage loans, you don’t have to provide much other than your name and social security number. Then, just let them know the house’s information and the lender will take case of the rest. Be sure you have enough money to be able to put down a substantial amount for a down payment.

There are other types of no doc loans besides mortgages, and those are no doc personal loans, no doc business loans and no doc home equity loans. Often times a no doc home equity loan is easier because your loan is based on an asset that you already have, and that being your home and how much you have already paid into it (and how much the worth has risen due to the economy or home improvements).  Don’t expect to get a high risk personal loan or a 125 LTV home equity loan without showing any type of documentation.  Those types of loans are the type that are no doc loans.

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