The Housechick Blog

If your income doesn’t come from a paycheck or you don’t want to reveal all to a mortgage lender, you can still get a home loan. Here’s how.

Ethical mortgage lenders generally try to talk customers out of getting low-doc and no-doc loans because they cost more. Before applying for one, talk to a qualified mortgage lender and verbally give them all your information first. Most people who ask for stated or no doc mortgages don’t need it. A good mortgage lender can help you work through and document what you think is undocumentable.

Most homebuyers work for a steady paycheck and are willing to divulge details of their finances in exchange for the best available mortgage loan.

But a lot of buyers don’t draw a steady paycheck from a boss. They own businesses, make commissions, live off investments or get their income in cash. Others don’t want to give up their financial privacy. Limited-documentation mortgages are available for these people.

Depending on the mortgage product best for you the lender will still require at least a credit report and a property appraisal. Borrowers who require flexibility and privacy of these types of mortgages generally carry higher interest rates than conventional mortgages. Lenders want these borrowers to make down payments and to have excellent credit.

There are three main types of low-doc/no-doc mortgages.
• Stated-income mortgages tend to be for people who work but don’t draw regular wages or salary from an employer. That includes self-employed people or those who make a living off commissions or tips.
• No-ratio loans are often the right call for wealthy people with complex financial lives, retirees who live off investments and people whose lives are in flux because of divorce, recent death of a spouse, or career change.
• No-doc or NINA (no income/no asset verification) mortgages are for creditworthy people who want maximum privacy and can afford to pay for it.