A no-income verification loan’s approval depends on the creditworthiness of the borrower along with the value of the property. The lenders know that you, the borrower, cannot qualify for securing a traditional mortgage; however, they know it very well that you certainly have the ability to pay the interest on a note, which will bring them money. Because of this ability of yours, these moneylenders are able to provide you this specific loan.
And these lenders even know that if the loan is still due after one or two years, you will either replace it with a traditional mortgage (from a bank) or renew it. However, what will happen if you have a negative income, or a higher Debt-To-Income (DTI) ratio (because of some new additions in your investment portfolio), or excessive write-offs? Do not worry as despite such scenarios, you can get such financing options easily.
Getting the no-income verification mortgages
Also known as stated income loans, these financial products are the best alternative when an investor has a negative income, or has excessive write-offs, or has spiraling DTI ratios. For securing such mortgages, you will never have to furnish all those previous year’s bank statements and income tax returns.
As long as you have a good credit history (600 FICO is the minimum requirement), you can get no-income loans easily (close to $ 2 million).
Apart from this, you will have to give up to 25 percent to 30 percent of purchase down payment.
The interest on this mortgage varies from one lender to another. This oscillation will completely depend on the number of docs you provide to the lender. (If you are furnishing all the docs that the lender may require giving you this specific mortgage, then the lender may even levy a low interest rate on the loan.)
The advantages of getting such loans
The process of getting your no-income verification loan approved is way faster than that of the traditional loan. In conventional loans, the key reason for the delay in loan funding is, many a time, related to the income verification.
This financial product implies that there is completely no need to display years of statements, to show tax returns, and to provide months of paystubs.
If you can afford giving monthly payments and 25-30 percent of down payment, getting this financial product will be your best chance to shape your commercial real estate investment dreams.
So once you are looking for a no income verification mortgage, it is best to know the information shared in this write-up. With this knowledge, you will be able to discuss your case more clearly with the representative of the institution that will lend you this mortgage type easily.