No Asset, Taxes or Income Verification

Understanding No-Doc Loans

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What is a No Documentation (No-Doc) Loan? 

The term no documentation (no doc) mortgage refers to a loan that doesn’t require income, taxes or assets verifications. This type of loan is instead approved on a declaration that confirms the borrower can afford the loan payments. No doc loans are commonly given to those whose incomes or taxes aren’t easily verified, or to those that want a faster closing. Largely unregulated, these loans are mainly based on the resale potential of the secured property and the repayment structure of the loan.

How a No-Doc is used

If you are a real estate investor that does not have the ability to go to prove their income or taxes, has a closing timeline, or a complicated employment history, then a No-Doc loan is ideally suited for you as it requires no proof of income or tax documentation. Given such documents aren’t required, it makes this type of loan well suited for the quick turnaround associated with real estate investing. It can be used for a myriad of property types, including, Single-family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, and Warehouses. The loans can be up to 85% of value, with rates starting at 4.3%, and range from $75K – $20M.

There are Fixed-rate and Adjustable-rate options. Foreign Nationals are also eligible, making it ideal for real estate investors based outside of the United States as well. The flexibility and quick approval process for borrowers makes it an attractive decision for many real estate investors.

 

The Benefits of No-Doc Loan Programs

There are many benefits to working with asset based and no income verification mortgage programs. Here are the pros and cons of working with NO-DOC Mortgage Loan Programs:

 

The Pros of Working with No-Doc Programs

  • They provide more accessibility for real estate investors looking to own investment properties. For example: If you previously were not able to obtain a loan due to strict documentation guidelines, a NO-DOC loan may be the solution.

  • Like other asset based loan programs, no documentation loans have a fast application process – where conventional mortgages usually have an underwriting process that lasts over the course of several weeks, these type of loan programs closing within 17-32 days.

The Cons of Working with No-Doc Programs

  • It’s difficult to apply for these types of loan programs due their rare nature – there are not many lenders that offer no documentation, no income verification, or stated income loans.

  • They come with less favorable loan terms. The mortgage rates on some no-doc or low-doc home loans are a bit higher. It depends on the size of your down payment, credit score, assets and how much you can disclose about your employment.
 

Is a No-Doc Loan right for you?

If you are looking to apply for a no documentation (NO-DOC) or a no-income-verification, or a stated income loan, here is a brief overview of tips to consider when applying:

  • You are someone who is self-employed, or has an irregular income, or you have money in the bank but your income fluctuates, then a no documentation mortgage could be the right choice for you as a borrower. 

  • If you are a prospective borrower or an experienced real estate investor- when working with a mortgage lenderon a NO-DOC loan program, the approval process will be based entirely on the value of the property. 

  • When you’re purchasing a home or commercial building as an investment property, then your projected rental income can help you get approved without any other income or asset documentation.

  • If you are a real estate investor, then a NO-DOC is ideally suited for you as it requires no proof of income or tax documentation. 

  • The approval is fast, making it well suited to the quick turn-around associated with real estate investing. 

  • This type of mortgage loan program can be used on the following investment property types, including, Single-family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, and Warehouses.