Bad Credit Loans Information
Information About Bad Credit Loan Financial Problems
Stated Income and No Doc loans
Lenders are primarily interested in three things, “the borrower’s income, employment and assets. If the borrower can document these items and that the lender can check that the loan is considered a relatively low risk. This type of documentation loans is the norm for most borrowers.
The income reported or no doc (no documentation) loan was originally designed for people who are independent and have difficulty documenting their income. If you can not or do not want the document to be income, employment or property, then a stated income or no doc loan is the way forward.
Some types of these loans require reduced documentation:
1) stated income, verified assets (SIVA) Income is only indicated, assets are recorded and verified
2) Report of income, stated assets (SISA) income and assets are only recognized and unverified
3) n ‘we have heard no reports of two types: one with an income and assets are prepared and audited Image, and the other with no income reported or verified.
4) No income, no asset (NINA) “information has no income or assets is reported or verified. Approval of the loan is based on credit score and down payment. Some lenders require proof of employment, while others do not .
5) has no income, no job, no assets “is not considered a document” real “when the information has no income, employment or assets is stated or verified.
No Doc Loans
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.