Finding a mortgage without traditional income can be a challenge. Many loan programs are designed in a way that doesn’t work for business owners or self-employed borrowers, who don’t have the traditional documents that are required.
If this sounds like you, then you need to be working with a mortgage team that understands you. We have years of experience helping our clients find the funding that works for their unique scenario, allowing more people to reach their goals in real estate. Check out this post to learn more about no doc loan programs and why it might be the right fit for you.
What is a no doc loan?
A “no doc” loan program, short for “no documentation” or “no documentation mortgage,” is a type of mortgage loan that doesn’t require borrowers to provide extensive documentation of their income, assets, or employment history during the application process.
It’s perfect for business owners, self-employed borrowers, or gig workers who have the income needed to afford a home but can’t provide the traditional documentation to verify it. It’s also a good idea if you find yourself with plenty of cash to buy a home and make PITI payments while you find employment, but you can’t verify income. This might describe someone who recently got a large settlement through a divorce or lawsuit, or perhaps the recipient of an inheritance.
Who is the best fit for a no doc loan program?
A no doc loan program is perfect for you if you know you have the funds to buy real estate, but you don’t have the typical documentation to show it. This might describe:
- Self-employed people
- Small business owners without traditional payroll income
- Seasonal and gig workers
- All cash businesses, or workers in industries like music or cannabis
- Real estate investors with multiple properties and/or LLCs
- Change in life (e.g. divorce with large settlement but no income, or recently widowed without employment but with life insurance or other recent infusion of cash)
How do I qualify for a no doc loan?
A no doc loan is qualified without looking at income verification and tax documents, like a traditional mortgage. Instead, we look for:
- A credit score of 660 or higher, though we can sometimes find solutions for borrowers with lower credit scores. If you’re not quite at 660, you can still reach out because we might be able to help.
- Down payment of 20%, in most cases.
- 12-24 months of PITI in reserves.
When would a no loan doc work for me?
We can help you with a no doc loan in a variety of circumstances. We can offer up to 75% cash out, and offer no doc loans for both primary and secondary homes. With loan amounts up to $3 million, you can even borrow through a no doc loan to buy a multi-family property. There are no pre-payment penalties, and the terms work well for borrowers in a wide range of budgets and scenarios. The best way to find out if it’s best for you is to contact us with your questions.
Where can I get a no doc loan?
No doc loans are not as readily available as traditional mortgage loans and are offered by a limited number of lenders. You need a lender with experience in these unique loans, and we fit the bill.
Start by giving us a call. You can schedule an appointment to talk with one of our loan officers, who will help you figure out what type of loan programs are going to fit your needs best. We are experts in finding financing solutions for our clients, with the proven experience you want from your mortgage team.
