What are the no asset verification loans?


No asset verification loans are a type of no documentation loans which in turn are a flavor of reduced documentation loans. Reduced and no documentation loans are very convenient to people who have the money but don't want the documentation paperwork. Unfortunately, sometimes reduced and no doc loans are misused and the borrower overstates their income with the purpose of obtaining higher mortgage loan amount.

No Asset Verification Loans Types

  • NINA loans - No Income No Asset Verification Loans.

    No income no asset verification loans - those require employment verification but no income or asset verification. If you are considering a NINA loan, consider No Ratio. With a No Ratio income and employment will be verified, but the debt to income (DTI) ratio is ignored and you will get better rates than you would with a clear no asset verification loan.

  • No Income, No Asset, No Employment (No Doc) Loans.

    These no asset verification loans are also referred to as NINJA loans - no income, no job, no assets. Rates will be the highest compared to all other reduced/no doc loans as lenders' risk is the highest. Limits and criteria vary among lenders. As a rule of thumb very high credit, significant equity and down payment are required.

On the whole, no asset verification loans are made for the purchase or refinancing of primary residences; however, rentals, 5+ unit and second home financing is also possible. 100% financing is usually possible with restrictions.

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