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Can you get a NO Documentation Mortgage Loan? (NINA, SIVA, SISA, Stated Income, No Doc)

The quick answer is NO.

Can you get a bank statement only limited documentation loan? Maybe.


History of NO DOC / Stated Income Mortgage Loans

"NO DOC" loans had been around for years, and served a niche market for the self-employed, commission, and tipped income home owners. Because of their additional risk, they came with higher interest rates, bigger down payments, and generally were only available to self-employed people with a minimum of 2-years provable self-employment history and trouble documenting their true income.

As the home loan markets changed through the early 2000's, these loans grew in popularity, especially once Wall Street introduced new no doc, stated income stated assets (SISA), stated income verified assets (SIVA), no income no asset, job (NINA), and other ridiculous variations with underwriting guidelines so silly almost anyone could qualify for a home loan. Interest rates on these loans became only slightly higher than regular loans, and down payment requirements dropped to sometimes even zero down!

These new variations turned a great niche mortgage program into what became commonly known as liar loans. This was because because home buyers were easily allowed to misrepresent their true circumstances, and Loan officers were more than happy to look the other way to close a loan. Theses loans were highly abused by consumers, and bad loan officers everywhere, as people realized they could easily get a loan they either should not be getting at all, or more commonly, to get a bigger loan than they normally would have received.

These liar loans were some of the first casualties of the mortgage market meltdown that started in 2007, as many of these customers were some of the very first people to end up in foreclosure. Gee, go figure...  Lenders everywhere quickly pulled them from their product lines, and Washington politicians went crazy right after that throwing up numerous rules and regulations that essentially makes these loans now impossible, or now ban them completely.

Unfortunately, this leaves many self-employed, commissions, and tipped income people who truly need and benefited from these types of loans without any home financing options, especially once the Dodd / Frank Financial Reform Laws went into effect in 2010.

As we get further away from the financial crisis of 2008, these unique portfolio loans have slowly creapt back into the market with very limited options.




WHAT IS YOUR QUALIFYING INCOME?

Current lending rules REQUIRE ALL LENDERS to document sufficient monthly income to safely afford the house payments. Traditional loans like Fannie Mae, Freddie Mac, FHA loans, and VA loans, all deem this proof as regular documented income, like pay stubs, tax returns, social security, child support, etc.

For self employed borrowers, lenders will look at your last two-years Federal Tax Returns, both business and personal. If you get 1099's, you are considered self-employed. We look at your return, and essentially, whatever you report to the IRS as taxable income is what we use for mortgage qualifying.  If you write your income down, that is great for not paying taxes, but a gigantic problem for home loan qualifying. Learn more about self-employed mortgage loans.

For those who received tipped income, commission, or others who income varies, your income will be averaged over two-years based on W2's and tax returns.

NON-TRADITIONAL INCOME LOANS IN 2017 AND BEYOND

Remember, NO DOC loans DO NOT EXIST! But lately we are starting to see some non-tradition mortgage loan programs slowly return to the market. What we are seeing available today is generally bank statement loan programs, where lenders will use either 100% of personal bank statement deposits, or 50% of business bank statements as your qualifying income.

We also see some asset based programs. Loan qualifications are based on verified assets. Assets can be in the bank, 401k, stocks, bonds, etc. Asset programs are primarily for high net worth clients.

These non-tradtional portfolio loans are generally on a case by case basis, and many are also exempt from the stringent Dodd-Frank Ability to repay regulation restrictions.

The terms are generally available as both fixed and adjustible rate mortgages, with significantly higher interest rates than traditional loans. Down payment requirements typically tend to be at least 20% down or more.

SHOULD I APPLY?

Due to the nature of these loans, all efforts should be made to qualify for traditionals loans, or to put yourself into position to refinance into a traditional loan as soon possible.

If you have a good credit scores, 20% or more down payment or equity position, and at least two-years of established self-employment, you have a possible chance of obtaining one of these loans. Before applying, we suggest you call our office at (651) 552-3681 to discuss your situation.



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33 Wentworth Ave E - Suite 290
St Paul, MN 55118

(651) 552-3681  

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Our services available only for properties located in Minnesota, Wisconsin, and South Dakota. PLEASE DO NOT KEEP US A SECRET from your FRIENDS. Licensed as Mortgages Unlimited, Inc. Nationwide Mortgage License # 225504. Joe Metzler NMLS Originator Lic # 274132. As a Lenders One partner, we are one of the largest  Retail Mortgage Originators in the country. We are consistently ranked as one of the top mortgage lenders in Minnesota by Minneapolis St Paul Business Journal. Any use or duplication of any materials is  strictly prohibited.  All images, text, and materials 1998 - 2017 Joe Metzler. This is the private web site of Joe Metzler, NMLS #274132. All Rights Reserved.