You may have heard of stated income, stated asset or no doc loans before. Basically a loan you can get by “stating” your assets and income rather than showing actual documentation to your lender. These loans are usually utilized by self-employed borrowers. While, No Doc Loans are very similar to stated income and stated asset loans. The No Doc Loan is basically a program which doesn’t require any income information, nor does it require asset or credit information. When lenders determine a borrowers eligibility for a No Doc Loan they determine their qualifications by how much the borrower is willing to put down, as well as the amount of equity in their current home. No Doc Loans are a version of stated asset loans.
It’s important that you have enough equity in your current home along with a decent credit history in order to get approved. No Doc Loans can be used to buy or refinance a house. There are options for borrowers looking to get a second mortgage on their home with the No Doc Second Mortgage program.
Currently Available No Doc Loans
Below is a list of available No Doc Loan programs and the specifics of the program.
Available No Doc Loan Programs:
- No Doc Adjustable Rate Mortgage or ARM Loans
- No Doc Fixed-Rate Loans: (exact loan length will depend on the lender)15 years to 30 year loans available for investment properties
Maximum No Doc Loan Amount:
- $2,000,000.00 Max Loan Amount
- No Minimum Loan Amount
No Doc Loan Available Property Types:
- Single Family Homes
- Mobile and Manufactured Homes (Depending on the lender)
No Doc Loan Eligible Borrowers:
- LLC business’
- Individuals (Single, Married or Joint Applicants)
No Doc Loan Credit Requirements:
- No(pending) Collection Matters over $5,000.00
- No Litigation in the past 5 years
- Prior Foreclosure or Bankruptcy is Permitted
- No Recent Repossessions (Considered on Case by Case Basis, depending on your lender)
The Downside to No Doc Loans
While there are many advantages to a No Doc Loan, there are some stipulations and requirements that might just be a deal breaker. The limit for duplex properties is 1 for a 4 unit residential property. Condo projects must adhere to standard project requirements and be warrantable. No tear-down properties will qualify, only properties considered habitable that need minor repairs do. Properties with more than 10 acres are not accepted with the No Doc Loan program. Also, Properties owned for less than 6 months are not eligible for refinancing and unfortunately, the Cash-Out Refinance option is not available with the No Doc Loan program.
Like any other loan program choosing the right lender is a crucial part of the home loan process. The guidelines and rates may vary lender to lender so it’s extremely important that you shop around to multiple lenders and compare their rates, guidelines and qualification requirements. It’s also important that your lender know the ins and outs when it comes to No Doc loans. Choosing the right lender for this loan program will actually end up saving you more money in the long run. It’s also important to be selective when choosing your lender, don’t settle for the first lender that offers No Doc Loans. The best method for making sure you have a qualified and knowledgeable lender is by shopping around. Start your lender search right here and you’ll be matched within minutes to a qualified lender eager to help you will all your home loan needs and answer any questions you may have. Get started today!