A no income verification mortgage is a way for the self employed to find a mortgage without verifying income. It sounds like an easy remedy, but actually obtaining one is going to be a job in itself. There are steps you can make to make qualifying much easier- but it will take some work.
Without hesitation, the first thing the loan officer is going to do when reviewing your qualification is to look at your credit score, or at least ask you if you know what it is. The credit rating you possess is largely going to determine whether or not you will be able to get the loan right off. Lenders will demand a rating that is average or better, since the risk they observe is going to be fairly high- certainly much more than normal.
Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can't be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.
Interest rates won't be so friendly either. Although you will probably have a higher interest rate, it won't be too high if everything else checks out. You can also refinance the mortgage loan in the future if you think your history of payments is proof of your responsibility. A remortgage can save you a lot of money if you stay up to date on payments over two years.
Lenders will not give you a large loan if you don't have a high income. Because this rule means you might not be able to afford a mansion, some think that it's fine to lie on the loan application and state a higher income. This is a rookie mistake that will cost the applicant dearly. Always triple check your methods in trying to estimate your actual income, and make your projects a bit lower than you estimated. Otherwise you could lose your home.
The economy isn't doing so hot as of current, so don't be surprised if you qualify and still get denied for a no-verification mortgage loan. The trick is to find a lender that is big enough to take the risk, qualify to their standards, and pitch the mortgage loan idea the best you can. Loan officers will sometimes work with you and get you qualified if you can't apply immediately.
Final Thoughts
You will need a good history to even be considered for a no income verification loan. If you have a rocky history, don't expect to get the loan without a significant down payment. It's best to wait a year or two if you can't find options. - 31387
Without hesitation, the first thing the loan officer is going to do when reviewing your qualification is to look at your credit score, or at least ask you if you know what it is. The credit rating you possess is largely going to determine whether or not you will be able to get the loan right off. Lenders will demand a rating that is average or better, since the risk they observe is going to be fairly high- certainly much more than normal.
Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can't be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.
Interest rates won't be so friendly either. Although you will probably have a higher interest rate, it won't be too high if everything else checks out. You can also refinance the mortgage loan in the future if you think your history of payments is proof of your responsibility. A remortgage can save you a lot of money if you stay up to date on payments over two years.
Lenders will not give you a large loan if you don't have a high income. Because this rule means you might not be able to afford a mansion, some think that it's fine to lie on the loan application and state a higher income. This is a rookie mistake that will cost the applicant dearly. Always triple check your methods in trying to estimate your actual income, and make your projects a bit lower than you estimated. Otherwise you could lose your home.
The economy isn't doing so hot as of current, so don't be surprised if you qualify and still get denied for a no-verification mortgage loan. The trick is to find a lender that is big enough to take the risk, qualify to their standards, and pitch the mortgage loan idea the best you can. Loan officers will sometimes work with you and get you qualified if you can't apply immediately.
Final Thoughts
You will need a good history to even be considered for a no income verification loan. If you have a rocky history, don't expect to get the loan without a significant down payment. It's best to wait a year or two if you can't find options. - 31387
