No Income Verification - The self employed homeowner's solution

2007-03-08 10:33:40

( Financial )



You want to have a house to call your own, of course, and you want to pay it through your own money. Sometimes, it would be necessary to apply for a loan, but this might prove difficult for people who have hard-to-document income (such as self-employed or commission-based employees). When you run your own business, your income does not come from a single paycheck, so it is probable that your income is not fixed. If you have this problem, it might be a good idea to apply for a no income verification loan.

Simply put, this kind of loan does not require you to present proof of income in order to qualify for the loan. People who own many little businesses, for example, may have a large gross income, but after tax deductions and the like, their resulting net income is much smaller. If you belong to a similar situation, you might have a high debt load, which will make it hard for you to apply for a regular loan.

When you apply for a no income verification loan, you will still have to indicate your total income and mode of employment in your mortgage application, but it will not be necessary to verify your income through documents such as W-2's, tax returns, or bank statements. Your length of employment would still be verified.

You still need good credit and a high credit score to qualify for this loan. You should also expect to pay a higher interest rate as compared to a regular loan. The hassle of documenting your income, and accumulating various receipts and stubs, however, would be eliminated. If you are positive that a no income verification loan is the perfect solution for you, it would be a good idea to look around, and see which lender will have the best offer tailored for you.


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