No Doc? No Problem: No Income Verification Loans
In the era following the 2008 housing market crash, finding no-doc loans with reasonable rates has become increasingly difficult. No-doc loans are a unique financing solution for borrowers with nontraditional income, like self-employed people. These mortgages pose more risk to lenders than traditional loans, which require that an applicant submit W2s, paycheck stubs and other documentation to establish their worthiness as a borrower. No-doc loans, also known as no income verification loans and low-doc loans, are approved or denied based on other factors, like credit scores and profit-and-loss statements from a small business. West Coast Realty Services has strong relationships with national lenders, which allows us to approve no-doc loans that big banks simply cannot. Contact us to talk about your mortgage options in Lake Forest, Anaheim, and Santa Ana, CA.
There are millions of self-employed people in the United States. While many of these individuals make more than enough to cover the cost of a mortgage payment and other homeowners’ expenses, it may not look like it on paper. Many self-employed people and business owners report deductions for many expenses, which results in lower taxable income. While this is a great help at tax time, it can hinder a person when it comes time to secure any type of financing, be it home, auto or personal loans.
What You Need to Provide
Each of our lenders who offers no-doc loans has their own approval requirements, and each borrower is carefully evaluated on a case-by-case basis. Typically, borrowers who do not plan to submit to income verification should be prepared to have good or excellent credit scores with no derogatory marks in their records, like history of late payments. In addition to profit-and-loss statements, potential borrowers may also need to provide a letter from a CPA to support their income claims.
Because they pose a higher risk to lenders, no-doc loans typically require a larger down payment than a traditional loan, sometimes as much as 30% or more. They have higher interest rates than traditional loans, and most often have an adjustable rate. Many of our no income verification borrowers take out no-doc loans, then refinance in a few years once they are able to more clearly document their income.
Have Hope for Home Financing
Though they typically have higher interest rates, sometimes no-doc loans are the right solution at the right time. We have several lending partners who compete on a national level, which means you can receive the best-possible rates for your no-doc loan. If you live in Lake Forest, Anaheim, Santa Ana, or nearby California, contact West Coast Realty Services to schedule a consultation and get a no-obligation quote.