Are you in need of a first mortgage or a refinance loan? Do you have trouble proving your income and need some help getting your loan? There are programs that do not force you to prove your income and you can get a no documentation mortgage loan without all the hassle.
Here are some situations that these loans work best for.
This program was first originated in the 1970s for business owners.
Business owners tend to have trouble proving how much they actually take home as income out of their profits.
This is due to expenses, unreported cash payments, and other reasons.
These loans allow them to write down a number and use that as their income instead of trying to prove it with bank statements and tax forms.
Another name for these loan programs is the stated income program and it works great for tipped individuals as well.
If you are a bartender or serve you might make $50,000 a year and only claim about $20,000.
This is very common and at $20,000 you will struggle to get a good mortgage.
However, with the stated program you can say you make $50,000 because you really do and use that as your income.
You should know and expect that your fees and your rate when using a no documentation mortgage loan will be higher.
This is due to the fact that you are a more risky loan because you are not proving your income.
Another thing to know is that you will need to have at least good credit.
If you have great credit then you are in even better shape, but at least good credit is necessary.