Does a No Doc Mortgage Loan Really Exist?
If you need a home mortgage, but you want to maintain financial privacy, a no doc mortgage loan may be your best option. With a no doc mortgage loan, you don't have to submit nearly as much required documentation as with a regular home loan.
Documents You Must Show
Even though no doc mortgage holders must divulge less private financial information, such as tax returns or income statements, they must undergo a credit check and a property appraisal at a minimum. Generally, lenders will only offer a no doc mortgage loan if the applicant has excellent credit.
Types of No Doc/Low Doc Mortgages
There are two main types of low doc mortgage loans, and one type of no doc mortgage loan. Choose the one that is right for you.
Privacy Costs
Financial privacy sounds great; however, it comes at a cost. A no doc mortgage loan carries a much higher interest rate than traditional loans. With the added privacy and flexibility of a no doc loan, most lenders require a significant down payment. Speak with your lender about no doc mortgages to find out if it is the best option for you.
Documents You Must Show
Even though no doc mortgage holders must divulge less private financial information, such as tax returns or income statements, they must undergo a credit check and a property appraisal at a minimum. Generally, lenders will only offer a no doc mortgage loan if the applicant has excellent credit.
Types of No Doc/Low Doc Mortgages
There are two main types of low doc mortgage loans, and one type of no doc mortgage loan. Choose the one that is right for you.
- No-Ratio Loan - This low-doc mortgage is generally reserved for wealthy individuals who live off of investments and/or have complicated finances (e.g. recently divorced or recently unemployed persons).
- Stated-Income Mortgage - This low-doc mortgage is for the self-employed or any worker who does not receive a regular paycheck from an employer.
- No-Doc/NINA (No Income, No Asset verification) - This is the most private mortgage and is reserved for people with excellent credit who wish to fully protect their financial privacy.
Privacy Costs
Financial privacy sounds great; however, it comes at a cost. A no doc mortgage loan carries a much higher interest rate than traditional loans. With the added privacy and flexibility of a no doc loan, most lenders require a significant down payment. Speak with your lender about no doc mortgages to find out if it is the best option for you.
