• From The more documentation you provide your mortgage lender (employment, income and credit history) the lower your interest rate may be. Many home buyers choose not to offer documentation for personal privacy reasons, and willingly opt for a higher interest rate. Yet, many of these home buyers have a healthy income, or savings, and a credit history . A no doc (documentation) or low doc loan provides increased ease and privacy when getting a mortgage in exchange for a slightly higher rate. Buyers that opt for a low doc home loan are typically those who don't prefer to have their entire life and financial history presented to the lender. For instance, they might be using an inheritance to secure a loan or have fluctuating income from owning their own business. Ease is a big factor as well. With a no doc or low doc loan, the borrower provides their name and social security number, along with information regarding the property being purchased. The rest is up to the lender. The Three Main Types of No Doc & Low Doc Loans *******NO DOC LOANS********* No Doc loans require the least documentation and are for buyers with good credit scores. The buyer provides minimal information (usually social security number and general property information) and the lender does the rest. Stated-Income (Low Doc) Loans Stated-Income, or low doc loans, typically attract people who work on a cash or commission basis - people who don't draw a consistent salary. The borrower will need to disclose earnings, usually for two years, and might need to show tax returns and bank statements. No Ratio Loans No Ratio mortgage loans are for borrowers who do not wish to disclose their income; therefore there is no debt-to-income ratio for the lender to consider. The no ratio borrower has good credit and abundant assets that make up for the lender not considering the borrower's income information. This loan can be a quick and easy process for borrowers that would have difficulty gathering documentation.
  • No-Doc loans are just what they say. No Documentation to prove income or assets. The only thing that will be required in the US is proof of insurance. With that said, at this point and time, I am not sure of any company that is accepting these types of loans.
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  • A pulse. ;-) NINA (No Income/No Assets) or NINJA (No Income / No Job or Assets) are a category of mortgage that has increased rates of default, encourage mortgage fraud, and are at the root of the collapse of the mortgage industry. Most require 720 or better median credit scores to qualify ... and little else. In its hayday, the No Doc loan was a great tool for self-employed or commissioned individual with stellar credit. With a significant down payment, the premium was negligible over traditional agency conforming interest rates. The premium rose as more defaults occurred. Very few lenders offer No Doc. loans any longer, of even Stated Income loans for this reason.
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  • With today's investor guidelines? A miracle.

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