No Income Mortgage - Opening New Doors

2007-03-08 10:33:40

( Financial )



The no income mortgage type of loan has been around for quite some time now. But the number of people wishing to enter the real estate market as well as the changing times have made no income mortgage more conspicuous and in focus. The increased awareness for these no income no asset loan deals has opened new doors for the aspiring homeowner.

No income mortgage is known and called by various different names. It is known as no income loan, no income no asset verification loan, no income tax loan, no income verification loan, or no proof of income loan. Look at these names closely to see if you can guess what a no income mortgage is from the names it is known by.

The term no income mortgage should not make you think an income is not required for this type of loan. For any type of loan, the underwriter would be foolish not to require a source of income from the borrowers.

A no income mortgage does not require a proof of income. With this, terms no income verification and no proof of income loan are used for these mortgages.

In this type of loan agreement, the underwriter of the loan agrees to lend you money without asking for any proof of your sources of income. Furthermore, a no income mortgage will not require you to present tons of documentation to support your reported amount of income and assets, thus the term no income no asset verification loan.

A no income mortgage, with its scantiness of required documentations and proof of income and assets, is a big aid to people who would have otherwise found it hard to acquire a loan to buy a new home or to refinance the existing one. If you are for instance self employed, the needed documents would stump you and you will find it very hard to acquire the loan you need. But with a no income mortgage loan or whatever you wish to call it will give you the chance to have money for your renovation or home-buying needs.

Of course, it is to be expected that the underwriters, even if they are willing to trust you on the amount of your income, will have to make sure that you have the capacity to pay. That’s why a verification of the source of income is always done beforehand. You also need to have excellent credit record to have relatively favorable interest rates and terms. Otherwise, you may just need to settle for higher interest rates.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.