No- income verification loans have numerous advantages. One of them is that you don’t have to produce documents showing your source of income. The loan is also known as a stated-income loan, no-doc loan, or the alt-doc loan. All these loans fall under the same category but with minimal differences. There are four main types of no-income verification mortgage loans and each one has its own application retirements.
1 Stated Income, Stated Assets
The SISA loan can be beneficial if you have problems documenting your assets and income. When applying for the SISA loan, the lender accepts your asset and income figures unconditionally. They will not compel you to produce documents to affirm your testimony. This could be your best option if you are a small business owner that keeps all your business assets in one business account and if you don’t document your personal compensation with the relevant authorities. In this case, the lender will use your bank statements dating back to one or two years to calculate your business’s monthly cash flow.
2. Stated Assets, Verified Assets
This type of loan could be your option if you have difficulties in documenting most of your income, but your assets on hand are verifiable. The lender wholly accepts your income figures and then verifies your assets. If you have a personal account but you depend on tips or gratuities income, you can fully benefit from the SIVA loan.
3. No Income, Verified Assets
No-income, verified assets loan is favorable if you have verifiable assets but has difficulties documenting your income. When applying for the loan, the lender will only verify your assets without considering your income status. If you are a retiree and you do not have enough verifiable income in your account but your assets can be documented, you can benefit from these types of loans.
4. No Income, No Assets
The NINA loan is the one with the fewest application requirements. The loan could be favorable if you can neither provide asset nor income documents. The NINA lender will offer you a loan after evaluating the collateral you present as well as other non-income factors. If you work in a foreign country and bank accounts are in that state, it might be hard to obtain documents that will help you in the loan application process. In this case, the lender will allow you to omit the section involving your financial details when you are filling in the loan application form.
Is a No-Income Verification or Limited Income Verification Mortgages Right for you?
If you are self-employed, if you have seasonal income streams, or you have difficulties accessing other mortgage loans, the no-income and limited-income verification mortgages could be your best option. In each of the situations above, you might have difficulties when documenting your income. The only option in such a case will be applying for the non-income verification mortgage loan.
You should not apply for this loan to hide your insufficient financial standing. When applying for the loan, make sure you are capable of paying back whatever you borrow. This type of loan should be a solution to reducing the tedious paperwork when applying for a loan. Not an excuse to avoid repaying back the loan.