 
The home of your dreams is within reach. You have established the value of the home, and have agreed upon a purchase price with the seller. You have consulted with your mortgage banker or broker who has informed you of the documentation required. However, there remains a problem. You have the means to make your mortgage payments, as well as sufficient funds for the down payment and closing costs. As a recent graduate of medical school, or perhaps law school, you may be under contract for substantial pay increases over the next few months. The fact remains, however, that presently your income does not qualify you for the loan amount you need. In addition, your down payment funds may have been derived from a gift, relative or an occasion such as a wedding, which cannot be documented. Don’t get discouraged. There are loan programs available to finance your dream home other than the traditional Full Income and Asset documentation mortgages. A No Income, No Asset check mortgage is based upon a borrower’s credit profile. Higher scores result in a more rapid approval and better terms. The pleasant aspect of this loan type is that you are not required to provide the laundry list of documentation normally associated with the mortgaging process. In most cases, the actual loan application has a one page format very similar to a credit card application. The only other documentation required is your contract and an appraisal for approval. There are also different types of No Income, No Asset mortgages based on the documentation you present. Stated Income, Full Asset and No Ratio loan programs provide preferential interest rates. While they both require asset documentation and verbal employment verification, neither require W-2’s, pay stubs and or tax returns. As a rule, more documentation results in a lower interest rate and better terms. Keep
this thought in mind. If within a period of a year, there is an
increase in your earnings, you can modify or refinance the No Income
mortgage into a Full Documentation loan with a more desirable interest
rate. If you’re purchasing a new home, your closing may not
take place for nine to twelve months; therefore, you can initially
apply for a No Income, No Asset type loan, and if your financial
situation improves prior to close you can restructure your mortgage
at no additional cost. |
