No doc mortgages and alternative income home loans can be a great option if you do not qualify for a Conventional, FHA, or VA loan. No Doc Mortgages can be useful for people who cannot provide proof of income documentation like W2s or tax returns. They can also be helpful for someone who has experienced foreclosure or bankruptcy within the past 2 - 4 years. These options include:
Bank Statement Home Loans
36-month Asset Utilization
Fresh Start Program
You may also hear these loans referred to as:
stated income mortgages
bank statement home loan
no doc mortgage
Nina (no-income no-asset)
no ratio loan
alternative income verification loans
We recommend you take a look at these alternatives to help you qualify for your next home loan.
36 Month Asset Utilization Qualification Under A No Doc Mortgage
This home loan option is great for business owners, self-employed, or investors. With this program, we are able to use your qualified assets and divide them by 36 months and add that amount to your monthly income.
This program is ideal for someone who has a lot of money in the bank but cannot provide proof of monthly income using W2s and tax returns.
Who can benefit from the 36-month Asset Utilization program?
Someone with alternative income with money in the bank
Take all of the qualified assets and divide them by 36 months
This amount can be added to your total monthly income
Example of Asset Utilization Calculation
If you have a total of $300,000 in qualified assets then you divide that by 36. This total is $8,333.00 and can be added to your total monthly income.
Proof Of Income With Bank Statements Under A No Doc Mortgage
Bank statements will typically be required by the lender when you are applying for a no-doc mortgage.
Income verification using bank statements
By submitting up to 24 months of bank statements we can use the deposit amounts to determine a monthly income. This is crucial to the qualification process of bank statement mortgages. This information is then used to calculate home much home you can qualify for.
Proof of Deposit
Proof of deposit may be required by the lender to make sure the borrower has enough funds for the down payment and closing costs. The proof of deposit (POD) will be requested by the lender. When the deposit has been made then the POD will be provided to the lender from the bank. Get more information about Proof of Deposits.
What is a bank statement mortgage?
A bank statement home loan is a program in which the borrower can submit bank statements to provide proof of income.
Who are bank statement mortgages good for?
A bank statement mortgage is for someone who cannot provide proof of income using the typical documentation. W2s and tax returns are typically used by borrowers to prove their income. For those who make an income that is not necessarily reflected on a W2 or tax return then a bank statement loan is one to explore. People this might work well for include self-employed, entrepreneurs, investors, and freelancers.
Can I use a Business Bank Statement to Get Approved for a Bank Statement Home Loan?
Yes, you can submit bank statements from a business bank account. It is possible that only a percentage of these deposits can be used because of the expenses associated with running a business.
Fresh Start Program
Our FRESH START mortgage program is designed to help lend to borrowers who have had a recent short sale, foreclosure, or bankruptcy. Typically if any of these events happen to you, there is a 2-4 year waiting period from the discharge date or sale date, to obtain a new mortgage using conventional or FHA financing.
Some of the Loan Features of FRESH START include:
LTV up to 85% with no Mortgage Insurance
Minimum Credit Score 580
DTI Ratios greater than 50% considered
Up to $350,000 cash back on refinances
Navigating Mortgage Options: Exploring No Doc Mortgages in Today's Market
In today's mortgage landscape, borrowers have a range of options to consider when seeking financing for their home purchase or refinance. One such option is a No Documentation (No Doc) mortgage, which offers certain advantages for individuals with unique financial circumstances or complex income situations. Here's an exploration of No Doc mortgages and their relevance in today's market:
Streamlined Application Process: No Doc mortgages are designed to simplify the mortgage application process by eliminating the need for extensive documentation typically required for traditional mortgages. This can be particularly beneficial for self-employed individuals, freelancers, small business owners, or those with non-traditional income sources who may find it challenging to provide traditional income verification documents.
Flexibility for Complex Income Situations: No Doc mortgages cater to borrowers with complex income situations, such as irregular cash flow, multiple sources of income, or difficulty in documenting income through traditional means. Whether you earn income from investments, royalties, consulting, or have seasonal income fluctuations, a No Doc mortgage provides an alternative solution to qualify for a loan based on other factors like creditworthiness and the value of the property.
Enhanced Privacy: For borrowers who value their privacy or prefer not to disclose extensive financial details, No Doc mortgages offer a level of discretion. As the name suggests, these mortgages require fewer financial documents, resulting in a reduced need to disclose sensitive personal or business information.
Quick Funding: With a streamlined application process and reduced documentation requirements, No Doc mortgages often lead to faster loan approvals and closings. This can be advantageous in situations where time is of the essence, such as when purchasing a competitive property or completing time-sensitive transactions.
Considerations for Interest Rates and Terms: While No Doc mortgages offer flexibility in the application process, it's essential to note that interest rates and terms associated with these loans may differ from traditional mortgages. Lenders typically assess risk differently when approving No Doc mortgages, resulting in potential variations in interest rates, down payment requirements, and terms. It's important to carefully evaluate the terms and associated costs to determine if a No Doc mortgage aligns with your financial goals.
Limited Availability: In today's market, the availability of No Doc mortgages may vary, as lenders may have different underwriting guidelines and risk appetites. It's advisable to research and consult with multiple lenders or mortgage brokers who specialize in No Doc mortgages to explore the options available to you and obtain the most favorable terms.
As with any mortgage product, it's crucial to conduct thorough research, evaluate your financial situation, and consult with mortgage professionals to determine if a No Doc mortgage is suitable for your specific needs and circumstances. Mortgage regulations and lending practices evolve over time, so staying informed and seeking expert advice will help you make well-informed decisions when exploring mortgage options in today's dynamic market.
Beacon Lending Can Successfully Guide You Through the Home Loan Process
Hello, my name is Brian Quigley and I have been a mortgage broker in Denver, CO since 2003. I have been fortunate enough to choose this very rewarding mortgage broker career and help thousands of borrowers over the years.