A no-income-verified home equity loan is a second mortgage loan that does not require you to provide documentation of income to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard-to-document income.
Most borrowers with hard-to-document income are self-employed or commission employees. Consumers who fall into these categories may have high incomes but have many business-related deductions that they write off on their taxes. This is good, on the one hand, since it reduces the taxable income and, therefore, the amount of taxes owed; However, when it comes to getting a home loan, it can be detrimental as most lenders use the last 2 years average taxable net income (the remainder after all your deductions) to determine your downside figure. income for qualifying purposes. This can cause you to have a debt-to-income ratio problem if you have a high debt load and therefore prevent you from qualifying for the loan. However, with a home equity loan without income verification, your gross income can be used for qualifying purposes instead of net income.
To qualify for a home equity loan with no income verification, in most cases, you will need good credit and a high credit score. Expect to pay a higher rate for this type of loan compared to a traditional loan where you must document your income. Also, although a no income verification loan does not require you to document your income, some lenders may require you to have a certain dollar value of available assets that must be verified. However, not all lenders have this requirement: some lenders offer a program called NINA, which stands for “no income, no assets,” which means you don’t have to do any documentation either. Loan guidelines and rates vary from lender to lender, so it’s a good idea to shop around to increase your chances of getting the best deal available to you.
For more information on home equity loans with no income verification, or to compare home equity loan lender rates and programs, visit http://www.equityloansource.com