No Income Verification Home Loans in California
If you are buying or refinancing a home in California, it is possible that you may need a no income verification loan. No income verification loans are rare and the lenders who offer them have flexible guidelines which allow financing for primary residences, second homes, and investment properties.
California home buyers who need a no income verification loan may be dealing with one of these issues:
- You have low documented income
- Income cannot be documented at all
- You have just recently started a new job
- You have no job
- You are an investor with too many mortgages
- Your debt to income ratio is too high
- You are self employed or 1099 and show very little or no income on your tax returns
What we typically see are self employed people who are looking for a no income verification loan is because they have too many tax write offs or because their business is too new for most lenders.
It is not just for self employed people because even W2 wage earners may have difficulty qualifying for a mortgage due to lower documented income or a short job history.
Everyone’s situation is going to vary and the key to getting approved will be your credit scores and down payment. The higher the credit scores and larger the down payment, the more options there will be for you.
The interest rates may be slightly higher for these mortgage programs but the monthly payment would be offset by the larger down payment and smaller loan amount. Refinancing in the future is an option if your situation changes and rates decline.
Types of No Income Verification Loans Available in California
There are three primary types of no income verification loans to choose from. We will list them here and you can read our full article about each to learn more.
Bank Statement Loans – A bank statement loan is something that self employed borrowers usually select. It is a program where you provide 12-24 months bank statements showing a flow of money coming in. The lenders use your average monthly deposits to determine your income. Read more about bank statement loans.
No Doc Loans – A no doc loan is a program where you provide absolutely no income information at all. This program is typically used for investment properties but may be available for a primary residence during times when lending guidelines are more flexible. Read more about no doc loans.
Stated Income Loans – A stated income loan is a mortgage program where you list the income that you make, but you do not provide any documents proving that income stated on the mortgage application. This is offered today by a handful of lenders. Read more about stated income loans.
No Income Verification Loan Process
The process to apply and to get approved for a no income verification loan is similar to a traditional mortgage. The first and most critical step is to have a discussion with a lender early in the process. It is important to understand what you may qualify for before shopping for a home.
Once you have an initial pre-approval, you can begin shopping for a home. You should refrain from applying with too many lenders.
Another important factor here is to improve your credit scores throughout the process. Your credit will play a major role in not only determining the down payment, but also the interest rates. Some lenders who offer no income verification loans in California will require higher credit scores.
If you find a home and go into contract, now your lender can enter the address and other information such as property taxes and submit your file to underwriting.
An appraisal will be needed, title insurance, and hopefully you get the home inspected to make sure there are no serious repair issues.
Read more about No Income Loans.
Which Lenders Offer a No Income Verification Loan in California?
When searching for a no income verification loan in California, you will not find these programs at the local bank. Traditional lenders will follow Fannie Mae and FHA guidelines which require you to fully document your income.
The lenders who offer no income verification loans are mostly Non QM Lenders or wholesale lenders. In most instances, these lenders will only work through a broker network and do not have an office near you. This is why you cannot simply go with your realtor’s preferred lender.
If you would like to speak with someone who can truly help with a no income verification loan, then complete this short form and someone will contact you.
Can I Get a Mortgage Without a Job in California?
There is a mortgage that will not require that you have a job. It is typically used for the purchase of an investment property. However, with the right scenario buying a primary residence may be possible.
Do You Need Proof of Income to Buy a House in California?
You do not need to have poof of income to buy a house in California if you plan to use a no income verification loan. If you would like an FHA loan or conventional loan, then you will need to fully document your income.
How Long Does it Take to Close a No Income Verification Loan
From the point where you have completed the application and sent in all of the required documents, you should be able to close on a no income verification loan in under 30 days.