No Income Mortgage
Here are the key aspects of the no income mortgage, along with detailed explanations for each feature:
No Employment Information Required: Borrowers do not need to state their employment on the application. This feature is particularly beneficial for self-employed individuals or those with non-traditional income sources who may find it difficult to provide standard employment documentation.
No Income Verification: Income does not need to be stated or documented on the application. This aspect aligns with Non-Qualified Mortgage (Non-QM) loans, which cater to borrowers who may have irregular income or prefer not to disclose their income details. For example, some DSCR (Debt Service Coverage Ratio) loans do not require traditional income verification but instead rely on the rental income generated by the property.
High Loan Amounts: Loans can go up to $2 million. High loan amounts provide opportunities for purchasing higher-value properties or consolidating larger amounts of debt under a single loan structure.
Flexible Use of Cash-Out: Cash-out can be used as reserves. This flexibility allows borrowers to use the equity from their property for various purposes, including as reserves for other financial needs or investments.
Debt Consolidation Options: Allows for rate/term debt consolidation. This feature helps borrowers manage their debt more effectively by consolidating multiple debts into a single loan with potentially lower interest rates and more favorable terms.
Loan-to-Value (LTV) Ratios: Up to 75% for purchase or rate-and-term refinancing. A 75% LTV ratio means that borrowers can finance up to 75% of the property’s value, which is relatively high and provides substantial borrowing power while still maintaining a reasonable equity cushion.
Minimum FICO Score: Starts at 680. A minimum FICO score of 680 indicates that the program is accessible to borrowers with good credit scores, though not necessarily excellent, making it inclusive for a broader range of applicants.
Low Reserve Requirements: As low as 6 months. Low reserve requirements mean that borrowers need to have fewer months’ worth of mortgage payments in reserve, reducing the upfront financial burden and making it easier to qualify for the loan.
Asset Seasoning: Only 30 days required. Asset seasoning refers to the period that funds must be in an account before they can be used for qualifying purposes. A 30-day requirement is relatively short and provides greater flexibility for borrowers in preparing their finances.
Primary Residence Only: This program is available only for primary residences. Limiting the program to primary residences ensures that it is used for owner-occupied homes rather than investment properties, which typically carry different risk profiles and lending criteria.
These features collectively make this loan program highly flexible and accessible, particularly suitable for borrowers with non-traditional income sources or those looking for higher loan amounts without stringent documentation requirements.
Program Highlights
Ideal For The Following Borrower’s
