A No Income Verification Home Equity Loan is a second home loan that does not require you to provide income documentation 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 commissioned. Consumers in 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, because it reduces 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 average of your last 2 years’ net taxable income (what’s left after all your deductions) to determine your deduction 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 no income verification home equity loan, your gross income can be used for qualification purposes instead of net income.
To qualify for a no income verification home equity loan, 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, even though 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,” meaning you don’t have to document 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
