Compass Mortgage - No Income Verification Loans

No Income Verification Loans

Although the availability of reduced documentation programs (more commonly known as “no doc” and “no income verification” mortgages) has been subtantially reduced as the result of the sub-prime lending crisis, you may still have some choices. These programs assist borrowers in obtaining mortgage financing when their income or assets are difficult to verify.

The menu of reduced documentation loan programs is most easily understood when categorized as follows:

Stated Income Loans: Stated income mortgages are the lowest interest rate products in the reduced documentation menu of programs.Good for borrowers who have verifiable employment (self employment is fine) and assets, but can’t prove their income.
Your stated income loan application includes a full representation of your source(s) of income and how much you make. We use the income you state to calculate your debt ratios (hopefully they are 45% or less). If your credit scores are high and you have 10% of you own documentable funds to put down, the interest rate may be just as low as a full documentation loan. (For a slightly higher interest rate, you can get a $0 down-payment stated income home loan.)
No Ratio Loans: Rates nearly as low as the stated income program. Good for borrowers who also have verifiable employment (self employment is fine) and assets, but who are unwilling or unable to make a representation about the sum of their income.
Your no ratio mortgage application includes a full representation of your source(s) of income. No income information is included with the application, so no ratio calculations are made. As all other information on the application is verified, the no ratio mortgage is a "middle ground" product with interest rates lower than a "no doc” program.

No Doc Loans are the most simple of all mortgage programs. This is a good program for borrowers who do not have verifiable employment or income.

Your no doc loan application doesn’t include any information about employment or income. The decision to lend you the money is based on your credit profile and the value of the property.

Since you wouldn't be providing any evidence or reassurance that you can afford the mortgage, the lender will require a downpayment and a higher interest rate. You'll get the lowest possible interest rate with a high credit score on a one- or two-unit home.

Get the lowest interest rate on your mortgage by disclosing and documenting as much as possible about your qualifications, including:

Where you work
How long you have you been with your employer
How much you make
Where you do your banking
How much savings you have

The more information you provide as evidence of your qualification and the higher your credit score, the lower the interest rate will be.

Warning: Be careful not to provide information that would give the lender reason to decline your mortgage.

For additional information about Compass Mortgage and the loan programs we offer, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

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