Question:

Mortgage loans with no income verification – what are they for?

Answer:

Mortgage loans with no income verification are there to provide privacy. Yes, very often privacy entails lies, but there are a lot of people who simply like to pay for greater privacy.

Borrowers With No Income Verification Loan Needs

People who don't live on steady paycheck, who own a business, are investors or have criminal practices are the type of borrowers who'd like a mortgage loan with no income verification. There are other people whose current circumstances - a divorce, retirement, hard time in the family, or career change - make them suitable candidates for no income verification home loans. Also, tip people who make their living on cash rather than on paycheck have difficulties proving the type of income they make.

A business person with a lot of assets may have to pay their accountant to put together assets and tax information more than they would with the simplified procedure of mortgage loans with no income verification. Or there may be someone who does not want to tell their life story to the mortgage broker.

In general, loan officers try to discourage people from taking a no income loan. Sometimes borrowers do not even need one as loan officers find a way to document what borrowers thought was not possible to document.

Interest rate for stated income loans is not always much higher than conventional loan rates. It greatly depends on the DTI, credit score, down payment and the property price. Starting from 1/8, the rates for no income mortgage loans may go up to 3% higher than prime loans.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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