A no income verification mortgage is a way for the self employed to find a mortgage without verifying income. It sounds like an easy remedy, but actually obtaining one is going to be a job in itself. There are steps you can make to make qualifying much easier- but it will take some work.
Without hesitation, the first thing the loan officer is going to do when reviewing your qualification is to look at your credit score, or at least ask you if you know what it is. The credit rating you possess is largely going to determine whether or not you will be able to get the loan right off. Lenders will demand a rating that is average or better, since the risk they observe is going to be fairly high- certainly much more than normal.
Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can't be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.
Also known as the "liar's loan," not being able to verify income is also going to mean that you will be subject to a higher interest rate. If everything else checks out, you can sometimes get by with only paying as much as 3% more or less. Realistically, you will likely be paying a lot more each month unless you have an ideal situation on your hands.
When applying for the loan, be sure to accurately state your income. If needed, state less than you actually think you make. That way you won't have a problem repaying the loan in the future. Lenders are always wary of offering such loans to someone who says they make more money than they actually make- it's one of the major reasons loans are defaulted. Be realistic and don't lie to the loan officer or you'll soon be out of a home.
The economy isn't doing so hot as of current, so don't be surprised if you qualify and still get denied for a no-verification mortgage loan. The trick is to find a lender that is big enough to take the risk, qualify to their standards, and pitch the mortgage loan idea the best you can. Loan officers will sometimes work with you and get you qualified if you can't apply immediately.
Closing Comments
The road ahead of you, should you choose to get a no-verification mortgage loan, is going to be a long one. Start to piece together all receipts of income you might have and try to explain to the loan officer your situation. Every little bit will help! - 30462
Without hesitation, the first thing the loan officer is going to do when reviewing your qualification is to look at your credit score, or at least ask you if you know what it is. The credit rating you possess is largely going to determine whether or not you will be able to get the loan right off. Lenders will demand a rating that is average or better, since the risk they observe is going to be fairly high- certainly much more than normal.
Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can't be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.
Also known as the "liar's loan," not being able to verify income is also going to mean that you will be subject to a higher interest rate. If everything else checks out, you can sometimes get by with only paying as much as 3% more or less. Realistically, you will likely be paying a lot more each month unless you have an ideal situation on your hands.
When applying for the loan, be sure to accurately state your income. If needed, state less than you actually think you make. That way you won't have a problem repaying the loan in the future. Lenders are always wary of offering such loans to someone who says they make more money than they actually make- it's one of the major reasons loans are defaulted. Be realistic and don't lie to the loan officer or you'll soon be out of a home.
The economy isn't doing so hot as of current, so don't be surprised if you qualify and still get denied for a no-verification mortgage loan. The trick is to find a lender that is big enough to take the risk, qualify to their standards, and pitch the mortgage loan idea the best you can. Loan officers will sometimes work with you and get you qualified if you can't apply immediately.
Closing Comments
The road ahead of you, should you choose to get a no-verification mortgage loan, is going to be a long one. Start to piece together all receipts of income you might have and try to explain to the loan officer your situation. Every little bit will help! - 30462
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