People who are self-employed or who earn an income through non-conventional methods may apply for home loans using the no-income verification mortgages. These are also referred to as stated-income mortgages. These mortgages will not have the same requirements as traditional mortgages as they would be taking into account that the people who apply for them may not be able to submit them. Instead of relying on tax returns, no-income verification mortgages will use other factors such as home equity or overall cash flow.
No-Income Verification Mortgages: How Do They Work?
If you are ready to invest in a home and need to apply for a home loan, you’ve probably looked into the many documents you’ll need to provide to prove your qualifications. If you earn a non-conventional income, however, you may not have many of the papers needed for a traditional mortgage. Fortunately, there are still several mortgage options to consider if you’re looking to apply for a no-income verification mortgage loan. Read on to find out more!
1 – SISA (stated income, stated assets)
SISA loans work well for people who have significant income that is not documented by W2 forms or other traditional methods. If you have income that comes in directly to your bank account or valuable assets that may be stated in your mortgage application, there are lenders that will take your bank statements along with the declaration of these assets as a way to guarantee your loan. SISA loans will not need to have too much documentation, lenders usually take your word for the amount of income you state, along with the documentation you are able to provide.
2 – SIVA (stated income, verified assets)
A SIVA mortgage loan shares some similarities to the SISA, except that lenders will require that you present paperwork for your assets. If you have a large amount of your income that is difficult to document but have valuable assets that you can obtain documentation for, this type of loan will work for you.
3 – NIVA (no income verification, verified assets)
A NIVA loan, unlike the two previously discussed, will not require any documentation at all about your income but will solely rely on the papers of the assets you have. If you are completely unable to come up with proof of income but have assets and documents to prove that they’re yours, a NIVA loan will be the right one for you.
4 – NINA (no income verification, no asset verification)
This is the type of loan that will require the least amount of documents out of all the four no-income verification mortgage types. The loan will be backed up purely by collateral or other non-income or asset factors. People who work for a foreign company or others who will have no other source of income that can be documented may apply for this type of loan.
You may be wondering if these loans may be right for you. The short answer is that if you have income and assets but if you are going to have difficulty obtaining proof of income for your mortgage, you may opt to apply for one of the mortgage loans mentioned above. Lenders who provide these loan types will not require the documents that are needed in a regular or traditional mortgage.
If you are looking to apply for a no-income verification loan in Miami, come to Halpern & Associates! We are a mortgage corporation based in Miami Beach. We are licensed in Florida and Tennessee. Come to us and get the mortgage you need today!