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No Document Loans for 2020 – No Doc Loans – No Tax Returns
No Documentation Loan Options
No Doc Loans or no document loans provide increased ease and privacy for borrowers in 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 2019 No Document loan options?
Please feel comfortable trusting us to find the right mortgage program for you in all 50 states by contacting us for 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 rate can be.
No Doc Loan Requirements
- Minimum of 10% down
- Provide only your bank statements
- Property should be your primary residence
- We can work with almost any credit score
- 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, bank statement loans are available to meet the needs of various employment and income situations and they are available in 2019.
The more documentation you provide 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 glad to have no doc loans as an option. Many of these home buyers have a healthy income, or savings, and a credit history.
Connect with us to find out if you qualify for a no documentation loan
A No Doc loan or Low Document loan provides increased ease and privacy when getting 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 those who are self employed and who need a bad credit mortgage.
Borrowers that opt for a No Doc loan are typically those who don’t prefer to have their entire life and financial history presented to the lender. For instance, they might be using an inheritance to secure a loan or have fluctuating income from owning their own business. They also may not qualify as a self employed borrower if they had to do it based upon their net income on the tax returns.
Ease is a big factor as well. With a No Doc loan, the borrower provides their name and social security number, along with information regarding the property being purchased. The rest is up to the no doc lender.
No Doc loans require the least documentation and are for self employed people. The borrower provides minimal information (usually social security number and general property information) and the no doc lender does the rest. No Doc home loans are great for people who want maximum privacy.
The Main Types of No Doc Loans & Low Doc Loans
This is 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 they are 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 don’t draw a consistent salary. The borrower will need to disclose earnings, usually for two years, and might need to show tax returns and 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. So, 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 approval process. These mortgages came with a slightly higher interest rate. UPDATE – No Ratio Loans are hard to find now.
No Income No Asset Loans (NINA Loans)
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. With NINA loans, neither your income nor your assets were documented on the loan application. Recent lending guidelines have limited the availability of NINA loans for primary residences and you are more 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 lenders maximum loan to value ratio.
To find out whether a no doc loan is right for you, contact us or complete the free quote and we will get back with you to discuss your options free of charge.
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 an still help you even if your credit scores are as low as 500
No Document Loans – No Doc Loans (FAQ) Frequently Asked Questions
Q: Are no doc loans still available?
A: True no doc loans 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 but lenders are only making them available for self employed individuals. You also need to be self employed for a minimum of two years.
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: As mentioned above, you will provide bank statements to prove your income. You still may be asked to provide your tax returns but they will not be used for qualification purposes.
Q: Can I get a no document cash out refinance 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 and the traditional lenders do not offer these programs. 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 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. 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: This stands for a 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 to help these people.
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 the mortgage using your tax returns and income.
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 the mortgage using your tax returns and income.
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 that 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 ratios are used for a no doc loan?
A: Typically, lenders are using ratios of about 43% for these loans. However, we work 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 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 mortgage lender?
A: There are a handful of lenders who specialize in lending to self employed borrowers. We can help you to get connected.
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 but only offered by certain lenders. Read our article about no tax return mortgages to learn more.
A: Yes, there are but only offered by certain lenders. Read our article about no tax return mortgages to learn more.
Related Articles…
No Doc Home Loans Explained – Mortgage 101
The Low Down On Low Doc Loans – Washington Post
Stated 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 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 complied and provided these loans but them 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. Interestingly enough they did not blame the big banks but instead they blamed mortgage brokers. Brokers do not approve loans.
What happened next was the lending guidelines tightened. All of the creative loan programs disappeared. Gone were no doc loans, stated income, option arm loans, etc. Some lending institutions even went out of business. Indy Mac Bank for example was a lender that specialized in no doc loans. They 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.