No doc loans
You can easily apply for a no doc loans and move over the easier way that can get the finance that you require urgently. These loans are meant for people who have a good credit but they do not have a regular source of income. Here we will be looking at the intricate aspects of the no doc loans and what types of loans are available without any documentation requirements.
Who can avail these loans?
The no doc loans are usually meant for people who own a house or any kind of fixed asset with a good value but find it difficult to arrange for proper documents to prove their source of income. But these loans are available only to people who have a good credit.
When you are taking these loans it should be kept in mind that you would have to pay a higher interest rate because of the fact that you pose as a risk to the lender in not giving proper documents for the loan. The lender would also not be aware of your income and hence cannot assess that whether you would be paying the loan on time or not.
The lender is at a greater risk when giving out these loans as compared to when he gives out a typical mortgage and hence to compensate the risk associated with the loan would charge a higher interest rate.
When giving out the no doc loans lenders usually require the borrower to have a minimum credit score of 680. However, there are some lenders who would opt for the minimum score of 700. When you take these loans then you should opt to take it after much consideration so that you do not end up spoiling your good credit mark.
In case you are self-employed then also you are applicable for these loans. For qualifying you are just supposed to give your bank statements for the past two years that would be enough to prove your financial standing. Lenders would also ask for your tax returns so keep these also ready.
Requirements of a no doc loan
When you are applying for a no doc loan then you are required to provide the following information to the lender:
- Your credit score
- The mortgage or the rental history for the past 1 year
- The title commitment
- A full appraisal
- Condo warranty or Hazard insurance
With the help of no doc loans you can easily buy town houses, single-family homes and also condominiums.
Types of no doc loans
The no doc loans can be classified into three main types. These include:
- Stated-income mortgages: These are for people who do not have a regular source of income. This category of loan is made available to people who are self-employed and those that work on commission.
- No-ratio loans: These loans are meant for people who have a nice financial life or even for retirees. However people having faced a recent divorce, change of job or sudden death of spouse can also apply for these loans.
- No-doc or NINA: With these loans there is absolutely no verification of assets or income and people with a good credit history can take these loans easily.
Getting the best no doc loans
When you think of applying for a no doc loan then it is advised that you do not go in for the first lender that you come across. You should make sure that you compare offers from different lenders and shop around for getting the best no doc loans. Keep in mind that a small difference in the interest rates can help you save a lot of money.
When you are applying for these loans make sure that you compare the total cost of the loan that the lenders declare as the APR of the loan. The APR gives the total cost of the loan including the interest rate as well as other cost associated with the loan. Besides this you should also not forget to compare the pre payment penalties associated with these loans.
It is also important that you should not give the lender any access to your credit report unless you are applying for the loan. The more the inquiry that the lender makes it would affect your credit score in a negative manner. It is also advised that you check your credit report yourself also so that you are aware of your credit score.
When taking these loans it is also advised that you check the terms of the loan so that you are aware as to when and how are you supposed to pay back the loan and what would your monthly payments come up to.
When you are on a look out for no doc loans you can also consider applying with online lenders. The online lenders offer much cheaper loan option to their customers in comparison to the conventional lenders.
Some of the lenders giving out these loans are mentioned below:
Five Star Mortgages:
They offer no doc commercial loans. You can easily qualify for their loans if you have a good credit history. You can contact them at Toll Free: 800-871-2636; Fax number: 888-667-5484; email: loans@fivestarsmortgage.com
1st Choice Mortgages:
They have more than 15 years of experience in the mortgage industry. They offer no doc-limited loans to their customers. You can contact them at Po Box 101451, Palm Bay FL 2910-1451; Office: 321.722.2650, Fax: 321.722.2621, Toll Free: 800.936.6916, Toll Free Fax: 800.936.6919.
Quicken Loans:
With them you can qualify for no doc loan. Contact them at help@quickenloans.com., or call at 800-251-9080 for more details.
Other Articles
