No Income Home Verification Equity Loan
If you’re in the market for a second mortgage, consider a no-income verification home equity loan. It’s perfect for homeowners who need a home equity loan but don’t wish to provide income documentation.
It’s ideal for the self-employed or those who work on commission. The self-employed or commission-based workers might have considerable income but have significant business-related expenses that will later be deducted from their taxes. Taxes are reduced, of course, but it can hurt when a potential lender averages the taxable net income for the last two years and determines a qualifying income. That poses a problem for a debt-to-income ratio, especially for those who owe plenty in existing debt. Instead, gross income is used to qualify borrowers who choose a no-income verification home equity loan.
No-income verification home equity loans aren’t for those with poor credit or lower credit scores. And for those who do qualify, expect to pay in the form of higher interest rates as opposed to a traditional loan. Further, some no-income verification lenders might require documentation verifying the dollar value of your assets. It’s not universal; some lenders offer a program called NINA, or no income, no asset documentation. Your best bet is to shop around, and find the best deal available to suit your needs.