Reduced Documentation Mortgage Loans
Reduced Documentation Mortgage Loans are a simple solution in an increasingly complex mortgage market. We are one of the largest mortgage brokers offering loan programs which are collectively referred to as reduced documentation mortgage loans. These Reduced Documentation Mortgage Loans are intended to assist borrowers obtain mortgage financing of their home or investment property when their income, employment, or assets are difficult to verify. Reduced Documentation Mortgage Loans can be very useful tools for the self employed individual. Please email me with any questions about Reduced Documentation Mortgage Loans
Reduced Documentation Mortgage Loans generally fall into three categories:
No Doc Mortgage loans require or permit no employment, income, or assets to be stated on your loan application. We do not verify any information beyond your credit profile and the value of the property through an appraisal. Our no doc lenders will allow as little as a 5% down payment on an owner occupied home or 20 % down on an investment property depending on your credit profile. If you want to use no doc mortgage loans in a refinance transaction, you are typically limited to 80% of the value of the property. If you have had credit issues in the past you will need to make a slightly higher down payment but I can get the loan done. Rates are 1 to 1.5% higher than conventional financing and are available on both fixed rate and adjustable mortgages with interest only variations also available. Interest only variations are readily available and you may choose fixed rate no doc mortgage loans or arms as your situation dictates.
A No Ratio mortgage is a good choice if you wish to not state any income information as your rate will be less than for a true No Doc loan. Because we do not need income information, no debt ratios are calculated. However, we will need to verify employment and your assets.
Stated income mortgages are the least expensive option in this category of mortgages. We will verify your employment and assets, your income is stated on the application but is not verified. Your stated income must be reasonable in light of your occupation and assets. Rates are usually only .500% above conventional rates. There is also a stated income, stated asset variation available as well.
Property and Occupancy types allowed
No Doc Mortgages allow you to purchase or refinance a single family, townhouse or condo. An investment property can be a single family, 1-2 unit, townhouse or condo. Vacation homes also can be a single family, townhouse, or condo.
Learn more about reduced documentation mortgage loans closing costs.
I have a page on calculating your qualification ratios.
I have a page on traditional documentation requirements.
New! View my Wealthbuilder presentation and learn the safe way to manage your home equity and fund your retirement using No Doc Mortgage Loans
Brand New! I offer an analysis of your situation today can make suggestions on how small changes in how your mortgage is structured today can have a life changing effect in the years to come. Read more
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