Mortgages for people with hard to prove income
Our no income verified mortgage is perfect for those individuals that have hard to prove income. Self-employed people often have a hard time showing income if they have a great accountant. The accountant’s job is to make sure that you pay as little taxes as possible. The problem with that when it comes to qualifying for a mortgage is that when you don’t show a large enough adjusted income and you may not be able to qualify for the mortgage that you are wanting to buy your next home.
We now offer a No Income verified mortgage to help those individuals. As long as you have acceptable credit scores and you have verified money in the bank for both the down payment and the reserves, we can now qualify you to purchase a home for loans up to 3 million dollars.
What you need to qualify
- Primary Residence and Second Homes
- Credit Underwritten Based on LTV, FICO, and Liquidity
- No Income Verified means no income used on the application
- Income Not Stated
- Debt-to-Income (DTI) Not Calculated
- Asset Seasoning 30 Days
- Only the first page of a bank statement required for typical portfolio loans
- Loan Amounts Up to $3 Million
- Up to 80% LTV Purchase/Rate & Term or 20% down. This loan is NOT available for HELOCs or cash-out refinances.
- FICO Beginning at 640
- Reserves from 3 Months
A No income verified mortgage is great for:
- Self-Employed/Small Business Owner
- Volatile or Irregular Income
- Seasonal & Gig Workers
- Real Estate Investors
- Owners & Employees of Cash Businesses
- Newly Self-Employed
- Transitioning from Recent Health, Family,
or Other Life Events
- Looking to Tap Trapped Home Equity
- Recent Immigration
- Disqualified Income
According to this article on Zillow, one of the biggest reasons the self-employed get denied for a loan is that they haven’t been self-employed for long enough. Lenders like you to have been self-employed for two years or more typically. That is not a problem with our No-income verified mortgage.
Rocket Mortgage states on their website that you will need things like letters from your accountant, a profit and loss statement, 2 years of personal tax returns and 2 years of corporate returns to get started with an approval. You will not need any on those items with our No-income verified mortgage.
Get Started with your dream home purchase today.
No Income verified are similar to Stated Income loans but with no income on the application to verify. Stated income loans require that the borrower state the income they earn. No Income verified loans simply do not need income stated, we approve your loan with no income verified on the application but rather put more importance on the credit, the collateral and the money in reserve after down payment and closing cost.
NO INCOME VERIFICATION MORTAGE 2022
What is a no income verification mortgage?
This mortgage does not require income verification. It is for borrowers who are looking to purchase or refinance their primary or secondary residences but can’t prove sufficient income to be eligible for a mortgage. Most banks and lenders will not approve these borrowers.
A borrower might not be able document their income for a variety of reasons. One example is a business owner selling their business, who may not have any income. Another example would be someone whose income comes from tips and gratuities but they don’t deposit cash in their personal bank accounts.
Is there a No Income Verification Mortgage Available
Most lenders require that borrowers have income documentation in order to be eligible for a mortgage. They do not offer true no income verification mortgages, regardless of whether it is a purchase or refinance. Although they may claim to have no income verification mortgages, it must be an investment property that generates rental income in order to qualify for the loan. This is also called a debt service ratio. Your employment history will be checked even if you apply for a DSCR loan.
You can get a mortgage without proving income or employment verification for a primary residence or an investment property. These loans are similar to the No Doc loans but require more of a down payment and verified monthly payment reserves.
When should you get a no income verification mortgage?
If you are unable to verify your monthly income, have complicated tax returns, or don’t want to deal with the hassle of providing tons of documentation about earnings, a no income loan may be an option.
Lenders evaluate self-employed income differently to salaried and hourly earnings. Lenders take extra care to ensure that borrowers have a good track record, stable income, a sound business, and the need for the product or service they offer.
You may want to consider a no income verification loan in the following scenarios:
- Last year , you had business expense writeoffs . Your net income may be affected by writing off large expenses such as equipment and commercial property purchases. Lenders will look at a two year history of self-employed income. A low year could affect your approval chances.
- You have had a decline in income. Traditional lenders will raise alarm bells if your income falls, especially if it’s self-employed. No-doc home loans programs are available to help you get a mortgage without submitting tax returns.
- You file multiple tax returns. Your tax returns will be more complex the more income streams you have. A no-tax return mortgage may be an option.
- You earn an irregular income. Seasonal contractors and freelance workers may receive lump sums of cash a few times per year. If a traditional lender is unable to figure out your income, a no-documentation lender might be able help.
- You’re a real estate investor. Only mortgages for primary residences or second homes are subject to the ability to repay rules. Investors may be eligible for a no-doc loan program for home purchases based on their projected rent. This is without income or assets documentation.
- You have high net worth but no job. A no-doc mortgage loan can be a great option if you are at the point in your life where you no longer need to work because of your high net worth.
What are the steps to get a mortgage with no docs?
Lenders don’t make loans to everyone just because they are called “no-doc mortgage”. No-documentation mortgage lenders that offer loans must prove you can repay the loan. They will ask for proof that you can afford the monthly payments.
Below are four common requirements for no-income-verification mortgages.
- HAVE VERY GOOD CREDIT. No-income-verification mortgage programs generally require a higher credit score than a regular loan with income documents.
- LARGE DOWN PAYMENT No-doc mortgage loans require a minimum down payment of 15%.
- ASK FOR HIGHER INTEREST RATE. To cover the greater risk of missing documentation, lenders may charge you higher rates than regular mortgages.
- PROVE THAT YOU CAN REAP the LOAN. Lenders need to see proof that you can make the monthly payments on your loan, on time payment history of your current mortgage or rent is required.