Bad Credit Loans Information

No Doc Loans – A No-Doc loan allows the borrower to apply for a loan and not have to state their income, employment, assets or even submit bank statements. This type of loan is often time appealing to Self-employed, single women who do not have the required two year track record and many successful entrepreneurs who simply don’t want to reveal how much they make. In doing a No-Doc loan the borrower will have a one percent higher rate on average than most conventional loans.These loans are based on the value of your home and your credit report. Interest only options are available including the 30 year fixed rate programs.

No Doc Loans are also called No Income No Asset. They are not the same as Stated Income, Verified Asset or Stated Income, Stated Asset. No doc loans are often confused with stated income loans but there is a difference. In a stated income loan the method of earning income must be proven but the borrower is allowed to simply state the amount of that income without providing any proof. A no doc loan means that no documentation at all regarding the amount or the method of earning the income is required.

Great loans for people who have lost their job or in a case where the amount of stated income would seem unreasonable. No Doc programs are available on loans as great as $1 Mil to 100%. In some cases a lenders guidelines for a no doc loan even waive the need for a full appraisal, or the requirement that the borrower have the property for at least 12 months before refinancing. This is a useful program for investment property owners who need to draw cash out of the equity of a property that was rehabilitated. Most lenders will not use the new appraised value with out additional documentation and “seasoning” of the property for at least 6 months and usually 12 months.

Continue reading →