No Doc States Income Home Loans
No doc stated income laons, or stated income loans, enable homeowners with good credit but an inconsistent flow of income to qualify for a mortgage loan. These types of loans are designed to aid those who find it hard to document their income. Even if you have good credit, the lender still assumes a high degree of risk in the transaction, making your interest rate relatively higher than a traditional mortgage loan.
Research No Doc Home Lenders
If you find yourself in a bind and this seems like the only option for you, it is imperative for you to do some research in order to find the best deal. You should note that when you are amidst the application process for a no doc loan, you are required to document all sources of income. The lender will then take this information and run your credit to acquire your FICO score. In general, no doc lenders will only agree to the transaction if the client’s FICO score is around 680. As competition for morgage loans in general and stated income home loans specifically become more intense, however, lenders tend to become more lenient.
Qualifying for a State Income Mortgage Loan
You might find it harder to document your income if you are self-employed or if a significant portion of your income is commission based. In cases such as these, you should be able to provide at least two years worth of income tax returns of bank statements as proper documentation. As aforementioned, it is important to shop around for the best deal. Compare the total costs of all potential home loans to see which one would be the most beneficial to you and your financial situation. On top of shopping around, you must also shop intelligently. Don’t let mortgage lenders utilize your personal information unless you are ready to apply to that lender. An excessive amount of credit inquiries can actually hurt your FICO score, damaging your chances of being approved for a no doc loan.
California No Doc Home Loans
States that tend to have a more diverse income structure often have a large proportion of
stated income loans. Lenders in states such as California, Florida, New York and Texas will more often have programs that accomodate no doc residential loans. If you are shopping for a Flroida or California no doc home loan, speak with several mortgage lenders to find out what programs they offer and whether they offer these loan types. If your credit score is below 520, you may have to apply for a bad credit loan.
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