No Documentation Verification Mortgages Are Alive And Well!
The previous year and a half or so has seen a massive chain of events unfold in the New Jersey mortgage broker industry with the shutting down of hundreds if not thousands of lenders and the elimination of many of the so-called “exotic” products.
When the dust finally settled only the strong have remained willing and able to lend to qualified borrows. We are proud to be among those standing tall and offering the very aggressive of what is available today for the home owner. Along with standard New Jersey usda rates that we have available, we are among the few remaining loan companies that can offer No Income Verification loans to our highly qualified New Jersey borrowers.
What sets apart “No Income Verification” from “Stated Income” loans?
The answer is that true “No Income” allows for the verification of a home buyer’s employment while allowing the income section of the application to remain blank. A “Stated Income” mortgage on the other hand, requires a borrower to “state” an income to be used on the application form, but not be confirmed. It must however, jive for line of work that the person’s is in. In both cases, fund verification is needed and must be large enough to warrant approval of the loan. There is no set calculation as only common sense will prevail. It is important to note that these products are for owner occupied properties ONLY and the home buyer’s MUST be self-employed or retired.
What is the benefit of going with a “No Income” or “Stated Income” loan?
With the changes that have happened in the industry there is not a higher level of automated underwriting approval that allows for income to be received as stated therefore, the only options available for the self-employed or retired borrower are those previously mentioned. Stated Income loans are allowed up to 70% loan to value (LTV) while No Income loans are limited to 60% LTV.
What make these products outstanding as well is that the interest rates are quite similar to Fannie Mae and Freddie Mac full verified programs. The add-on to the interest rate is .375% for No Income and .25% for Stated Income programs. To be more specific a 30 year fixed rate as of this blog posting would be 5.50% up to $417K for No Income and 5.375% for Stated Income. These options are available for our 5/1, 7/1, 10/1 ARMS as well as our 10, 15 and 40 year fixed.
If you have been having challenges documenting your income with you normal bank then a no income documentation loan may be just what you have been waiting for.
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