No Document Loans for 2022 – No Doc Loans – No Tax Returns
No Documentation Loan Options
Updated February 13, 2022
No Doc Loans or No Document Loans provide increased ease and privacy for borrowers who sometimes have difficulty documenting their income. No doc loans do not require borrowers to provide any income or very little asset documentation to qualify for a mortgage.
A question that many people are asking is what are my 2022 No Document loan options?
Please feel comfortable trusting us to find the right mortgage program for you in all 50 states by contacting us to have a confidential discussion. We can review your mortgage scenario and will let you know what your options are without pulling your credit. This is simply to have an initial discussion to see if this mortgage is a good fit for you and to get an idea as to what your interest rates can be.
No Doc Loan Requirements
- Minimum of 10% down
- Provide only your bank statements
- Property can be your primary residence, second home, or investment property
- We can work with lower credit scores
- No tax returns needed
Click to get help with a no doc loan or call 732-761-9041
Different Types of No Document Loans
No doc loans, low doc loans, stated income loans, NINA, no ratio loans and bank statement loans are available to meet the needs of various employment and income situations and they are available in 2022.
The more documentation you provide to your no doc lender (employment, income, and credit history) with your loan application, the lower your interest rate may be. Many home buyers cannot provide documentation for personal or tax reasons and are clad to having no doc loans as an option. Many of these home buyers also have a healthy income, savings, or credit history.
A No Doc Loan or Low Document Loan provides increased ease and privacy when applying for a mortgage. In the past, anyone could apply for a no doc loan but now loans like this are for self-employed borrowers. No doc loans are also available to investors who may not be self employed.
Borrowers that opt for a No Doc Loan are typically those who do not prefer to have their entire life and financial history presented to the lender. For instance, they might be using inheritance to secure a loan or have fluctuating income from owning their business. They also may not qualify as a self-employed borrower if they had to do it based upon the income on their tax returns.
Ease is a big factor as well because with a no doc loan, the borrower provides minimal amounts of information and documentation. They will provide their social security number, current address, and documentation about the property they plan to purchase. The rest is up to the no doc lender.
No Doc Loans require the least documentation and are usually for self employed people and for those who want maximum privacy.
Types of No Doc Loans and Low Doc Loans
Bank Statement Loans
Bank Statement Loans are for self-employed individuals only. No Doc Lenders will ask you to provide 12-24 months bank statements. They may also ask for your tax returns but the bank statement deposits will be used for qualification purposes.
The average monthly deposits will be used to qualify you for your mortgage. They will take a percentage of those deposits and those dollars will be treated as income. The good news is that all of the legitimate tax deductions that you are taking for your business will not be used against you like when you apply for a conventional loan. Bank statement loans are the best option available to you now.
Stated Income or Low Doc Loans
Stated Income Loans or Low Doc Loans typically attract people who work on a cash or commission basis or people who do not draw a consistent salary. The borrower will not need to disclose earnings and might not need to show tax returns or bank statements.
In the past, stated income loans allowed borrowers to simply state what their income was on the loan application, but they did not have to provide any proof of that income. This meant no pay stubs, tax returns, or W2s. Even salaried borrowers were able to get these loans. It was like the wild wild west in the mortgage industry.
Update – We now have a no doc lender that has a program that is a true no income documentation loan. They also do not require that you have a job. You will need a significant down payment and decent credit scores. Contact us to find out more and whether it is available in your state.
No Ratio Loans
No Ratio mortgage loans are for borrowers who do not wish to disclose their income; therefore there is no debt-to-income ratio for the lender to consider. The No Ratio borrower has good credit and abundant assets that make up for the lender not considering the borrower’s income information.
This loan can be a quick and easy process for borrowers that would have difficulty gathering documentation. Keep in mind that very few lenders offer this type of loan at the moment.
With this loan, the borrower would document their income but the ratios were not considered during the loan application process. These mortgages came with a slightly higher interest rate.
Update – No Ratio Loans are available but hard to find right now.
No Income No Asset Loans (NINA)
No income no asset loans (also called NINA loans) are for self employed people who do not or cannot disclose both income and assets. NINA loans are also for borrowers whose income and assets are typically not sufficient to qualify for a loan. In this case, the borrower will need to have good credit.
NINA loans will also be quick and easy to process because neither your income nor your assets are documented on the loan application. Recent lending guidelines have limited the availability of NINA loans for primary residences and you are likely to find lenders who offer this for investment properties.
No Doc Refinance
There are lenders who offer a no doc refinance to borrowers who cannot document their income or assets. The rates will be similar to what you would get if you were purchasing the home. However, a no doc cash out refinance will be limited to the lender’s maximum loan to value ratio.
In a recent article by CNBC, they tell us that some banks require few mortgage documents. In this case, they are calling it a Light Doc Loan where the bank does not have to comply with the Dodd Frank ATR or ability to repay rule.
If you are looking for a no doc loan and you have bad credit, we can still help you even if your credit scores are as low as 500.
No Doc Investment Loan
No doc loans today exist to help finance investment properties. For these loans, you do not need a job or any income documentation. The lenders are simply looking at your credit scores, down payment, and whether the property will be cash flow positive.
In most instances, a no-doc investment loan can be done with as little as 20% down. You may find then in an interest-only option with 30-year financing. Read our article on investment loans to learn more about the program. If you are ready to get pre-approved for a no doc investment loan now, then simply contact us.
No Document Loans – No Doc Loans (FAQ) Frequently Asked Questions
Q: are no doc loans still available?
A: A true no doc loan for primary residences are no longer available. However, the program available today is a bank statement loan for self-employed people. This will be your best option if you are self employed.
Q: Can anyone get a no document loan?
A: These loan programs today are available but lenders are only making them available for self-employed individuals.
Q: Can I refinance a no-doc loan without proof of income?
A: Yes, you can get a bank statement loan which only requires you to provide 12-24 months of bank statements.
Q: Do all lenders offer no documentation loans?
A: Most lenders do not offer these creative loan programs. We are connected to the best no-doc lenders who can provide you with the best options for your scenario. The big banks you see in your neighborhood most likely cannot help you.
Q: What if I cannot provide tax returns to prove my income?
A: You do not need to provide tax returns if you have the ability to provide bank statements to prove your income. You still may be asked to provide tax returns or tax forms but they will not be used for qualification purposes.
Q: Can I get a no document cash-out to refinance the loan?
A: You can get a no doc cash-out refinance loan. Most portfolio no doc lenders offer these programs with a specific maximum loan to value ratio.
Q: Which lenders offer no document loans?
A: There are a few that offer these programs but the traditional lenders do not offer them. We have been connected to the best no document lenders for the past 15 years.
Q: Can first-time home buyers get a no document loan?
A: Yes as long as you are self employed you can also be a first time home buyer and get a no document loan.
Q: What is a bank statement loan?
A: It is a loan for self-employed individuals who need to use average monthly bank deposits to qualify for a mortgage rather than using the net income from their tax returns.
Q: Can I get a no-doc home equity loan?
A: Right now, there are no lenders that offer a no-doc home equity loan or HELOC. If you are self-employed and cannot document your income, your only option right now is to do a refinance to cash out the money that you need.
Q: What is a non-QM Loan?
A: Non QM stands for Non-Qualified Mortgage Loan. A qualified mortgage is one that meets the standards set by the federal government. Unfortunately, many people do not qualify for those loans due to their not so unique situations. Therefore, non-QM loans such as bank statement or stated income loans are available.
Q: Are no doc or no document loans available with no money down?
A: No doc loans have always required a down payment of at least 10%. If you need a no money down loan, then you will have to qualify for a mortgage using your tax returns and income documentation.
Q: What is the “ability to repay rule”?
A: It is a rule that requires lenders to do their best to make sure that borrowers have the ability to repay the loans they are applying for. This becomes even more important when they are applying for a reduced documentation loan. This is also called the ATR/QM rule.
Q: What debt to income rations are used for a no doc loan?
A: Typically, lenders are using ratios of about 43% for these loans. However, we with with high DTI lenders who will allow for DTI ratios as high as 55%.
Q: Are there mortgages for people with no job?
A: Yes there are programs for people with no employment. You will need other compensating factors such as a large down payment, decent credit scores, and at least 6 months of reserves. Check with us on this because the program may not be available in all 50 states.
Q: Where can I find a self employed lender?
A: There are a handful of lenders who specialize in lending to self-employed borrowers. We can help you to get connected.
Q: Can I get a mortgage with no tax returns?
A: Yes, there are mortgages available with no tax returns required but they are only offered by certain lenders. Read our article on no tax returns mortgages to learn more.
No Doc Home Loans Explained – Mortgage 101
States Income Loans Making a Comeback – Bankaholic
No Income Verification Mortgages – MSN Money
What Others are Saying
Trulia – No doc or stated income loans are making a comeback and this is huge for self employed borrowers.
American Banker – One of the best things for the lending business has been the bank statement loan for self-employed individuals.
What Happened to No Doc Loans?
Prior to the housing bubble, a dead person could get a loan without providing any income documentation. Basically, all you needed was an address and a signature.
Legislators forced banks to offer loans that would help more people to be able to purchase a home. In fact, there were fines if the lenders did not offer these loans. The lenders compiled and provided these loans but they sold them off in bundles as investments.
When people started to foreclose, the loans defaulted and the investments failed. This resulted in the mortgage meltdown of 2008. Politicians blamed the lenders and interestingly enough they did not blame the big banks but instead, they blamed mortgage brokers.
What happened next was the lending guidelines tightened. All of the creative loan programs disappeared. Gone were no doc loans, stated income, options arm loans, etc. Some lending institutions even went out of business. Indy Mac bank and Countrywide for example that specialized in no doc loans are gone now.
After a few years of mortgage darkness, some of the creative programs such as bank statement loans started to come back again. Now, we have enough options to help people who cannot qualify for a conventional loan.
We are able to help you to find a no document loan with the best no doc lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming