NO DOC, NINA, SIVA, SISA Home Loans
NINA Loan - A NINA (short for No Income, No Asset) loan is where the borrower does not have to disclose income or bank statements on the application.
If you have excellent credit and are seeking a lower LTV loan amount, this loan may not cost you any more than a full doc loan.
With this program, you will still likely be required to verify that you do have a source of income. One way of supplying this information is through a Verification of Employment, by which your employer verifies that you are an employee of their company. Other options, for the self-employed, include providing a copy of your business license or a letter from your Certified Public Accountant stating that you do generate income.
NINA loans are sometimes referred to as no doc loans, however "true no doc" loans are sometimes further defined as NI NA NE for No Income, No Assets, No Employment documentation. These loans are ideal for borrowers who have difficulty substantiating employment, including the recently retired, and borrowers who have started their own business within the last 12 to 24 months
With a stated loan you are required to show proof of a job, your job history, and you need to list your true income on your loan application. The reason why people do stated income loans is for reduced income documentation. With a stated income loan you are not required to show W2's, pay-stubs, tax returns, bank statements, etc... to show proof of your income. The bank is trusting that you are listing your actual income on your loan application. Usually a stated loan will carry a little bit higher rate than a regular full income documentation loan and the qualifying requirements will be a little tougher as well. However, if you do not actually make as much money as you are stating on your loan application and you are lying about your income a more appropriate loan may be a NINA, No Income, No Asset type loan. With this type of loan you do not have to disclose an income amount on your application at all. While your job will still be verified, to make sure you actually do have a source of income, there will be no income verification and there will be no income even listed on your loan application at all. NINA loans will carry even a higher rate bump than stated loans because of the higher risk in these types of loans. These types of loans are good for people who are self-employed and make a lot of money but write off a lot too. NINA loans are also good for people whose incomes may be just a little higher than the permitted DTI, debt to income ratio, on a certain program. NINA loans can also be good for people who have other sources of income, in addition to their primary jobs, that can not be documented or would not be accepted by a lender. Consult your mortgage professional to find out which mortgage loan program is best for you.
Only borrowers with strong credit will qualify for this type of loan. Also, expect to pay a higher interest rate and be limited to a lower LTV or loan to value.
The NINA loan program is perfect for borrowers who are self-employed who may not be able to document their income for any reason.
For the average homeowner who is on a fixed income or are wage earners who may qualify based on their credit, be careful not to buy too much house than you can actually afford.
No Income No Asset loans can be a great alternative to stated income loans.
NINA Mortgage Refinance - NINA stands for No Income, No Assets and means that a borrower can qualify for a loan without present documentation of either income or assets.
NINA (No Income No Asset) type loans are good for many different situations. If you are recently self-employed and are unable to get a traditional mortgage loan because you don't have a 2 year history of being self-employed you may qualify for a NINA loan and not have to state where you work, what you do, how much you make, or how much money you have "stashed away" anywhere. If you receive income from other sources that you would rather not disclose or they may not be acceptable to an underwriter you may want to apply for a NINA loan. This way you do not have to disclose any income or asset information that you don't want to. Consult a mortgage professional to see if you would qualify for this type of mortgage financing.
Sometimes NINA is reffered to as a NO DOC type of loan. However some NINA programs will still verify employment. A true NO DOC loan will not verify employment.
NINA Loan - A NINA Loan is a where the borrower does not disclose income or assets on the application.
These loans are generally a higher risk to the lender. Since they are higher risk loans they demand a higher fico score and the rates can be higher.
NINA stands for "No Income, No Assets".
This does not mean that the borrower does not have income or assets. It just means that the borrower does not want to disclose that information to the lender.
These loans typically carry higher interest rates than fully documented loans.
NINA loans usually require a higher credit scores. Genrally the higher LTV(loan to value)the higher the score needed to qualify
Because NINA mortgages require less paperworks, they generally take less time to underwrite and less approval conditions to clear before closing.
The NINA loan is typically chosen for self employed borrowers that do not have seasoned funds and cannot prove thier income. Season funds must have a trackable history of 60 days and cannot include cash or unsecured borrowed funds.
The NINA loan approval is based on down payment, credit history, and property value. This program still requires "employment" documentation of your past 2 years, while others do not.
The line gets fuzzy between no-ratio and NINA mortgages, and generally is delineated by credit score. In many cases, the lender will want to know what the NINA applicant does for a living, and for how long. Lenders feel more comfortable with a borrower who has been doing the same job for at least two years.
NINA mortgages, No-Income No-Asset, do not require loan applicants disclosing the amount of their salaries and their cash reserves. Banks still want to know about the homebuyers' employment information. NINANE, which stands for No-Income No-Asset No-Employment, or better known as No-Doc mortgages, do not require even the disclosure of the homebuyers' employment.
NINA loans are often used by homebuyers whose incomes are difficult to document, such as waiters, taxicab drivers and hotel doormen, whose incomes consist mostly of cash tips. Many small business owners also prefer NINA mortgages because their incomes are closely tied to their business. When business owners apply for Full-Doc loans, banks require their business financial documents, such as 1120, 1120S, 1065, various schedules, year-to-date Profit and Loss statements, business account statements, etc., in addition to their personal financial documents. In stead of disclosing all their business financial information, most business owners opt for the simplicity of NINA mortgage loans.
The Loan To Value ratio in which borrowers are allowed to borrow are usually much lower on a No Income, No Assets loan program.
Who is N.I.N.A. - N.I.N.A. stands for No Income, No Assets, and is a great program for people who may not have cash reserves in the bank, and may have trouble fully documenting their income.
No income and no asset loans, also referred to as NINA, are usually very helpful for borrowers who are heavily commissioned with little base salary, borrowers who are self-employed and for borrowers who are 1099'ed. NINA loans can be used for any type of borrower, however they are more common for the above types of borrowers.
Do you need to close quickly? NINA loans tend to close very fast because there is very little information that has to be verified by underwriting. If you have a good credit score and speed is your goal, ask your mortgage professional about a no doc NINA loan.
A sister to the NINA loan is the No Doc loan, also known as NINANE - the NE stands for No Employment, meaning that you do not need to provide employment information on the mortgage application. All of these loans have a place and a real purpose depending on your situation. Keep in mind, however, that your rates will usually go up slightly each time you reduce the amount of information you provide to the lender on your application.
Certain lenders have programs for borrowers with excellent credit that afford the benefits of a No Income, No Asset verification loan with no increase to rate or fees. Credit scores often need to be in the excellent range for these programs.
The higher the Loan to Value on No Income Loans, the higher the credit score needed to Qualify.
No income no asset loans (NINA) loans can be useful for a borrower who has a high commission job or is self-employed.
NINA or No Income No Asset loan documentation options are not true "no documentation" or No Doc loans, because they require the borrower to verify their employment. A true no documentation mortgage refinance requires No Income, No Assets & No Employment or NI/NA/NE.
One benefit of a NINA loan is that since no income is listed, there is no "reasonability" test of your income. In layman's terms, there is no scrutinization of your income at all.
A variation on this theme is the No Ratio loan. This one allows one to either state their income or fully disclose your income, but not necessarily penalize you for have a worse than 50% debt to income (DTI) ratio.
No Doc Loans - A No-Doc loan allows the borrower to apply for a loan and not have to state their income, employment, assets or even submit bank statements. This type of loan is often time appealing to Self-employed, single women who do not have the required two year track record and many successful entrepreneurs who simply don’t want to reveal how much they make. In doing a No-Doc loan the borrower will have a one percent higher rate on average than most conventional loans.
No doc loans are ideal for people who have changed careers or have income that is then being unreported.
No doc loans are often confused with stated income loans but there is a difference. In a stated income loan the method of earning income must be proven but the borrower is allowed to simply state the amount of that income without providing any proof. A no doc loan means that no documentation at all regarding the amount or the method of earning the income is required.
Past credit history and credit score is very important when applying for a no documentation loan since the lending decision is based on extremely limited information.
A NO-DOC loan is good for borrowers who just relocated, or have recently become self employed.
No doc loans are much easier to process than the normal loans. There is very little paper work in comparison and not much to verify.
In a soft real estate market, homeowners with no equity in the homes are much more like to default on their mortgages. Because of the intrinsic risk of default associated with No Documentation Loans, most lenders require that the home buyer commit a bigger down payment towards the property.
No Doc loans require the least documentation and are for buyers with good credit. The buyer provides minimal information and the lender does the rest. No Doc loans are great for people who want maximum privacy.
No documentaion, or no doc, loans are are products that require less paperwork than a full doc loan. This can make the loan process run much smoother. These loans are often used by borrowers who are self-employed.
NO doc loans are not a opportunity to lie about your income to obtain a more exspensive house then you can acctually afford.You are responsible for providing an accurate figure when the loan officer ask's for your income amount. The loan officer should not coach you or fill in the amount for you. If the loan is audited and fraud is discovered you and or the loan officer can be held accountable under the law.
No doc program for a first time home buyer is available as well. However, the first time home buyer is required to produce a legitimate verification of rent for past 12 months with no lates. The lender wants to make sure that if the borrower is a responsible on house payment.
The first time homebuyer needs to be careful on payment shock. For example- the borrower has been paying $1000 as his rent. The lender usually doesn't want to see the borrower making more than $1500 as his/her mortgage payment (50% payment shock). Unless the broker could present some compensating factor, the lender has a limit on how much payment shock the borrower should face.
Individuals who live off of equity and debt investments very often have no means of verifying employment or income due to a variety of factors, and are excellent candidates for no-docs / NINA type loans.
In some cases a lenders guidelines for a no doc loan even waive the need for a full appraisal, or the requirement that the borrower have the property for at least 12 months before refinancing. This is a useful program for investment property owners who need to draw cash out of the equity of a property that was rehabilitated. Most lenders will not use the new appraised value with out additional documentation and "seasoning" of the property for at least 6 months and usually 12 months.
There are lenders offering 100% no-doc loans, but to qualify you must have excellent credit and reserves. Often times this is limited to borrowers who have owned property in the past.
No Doc Loans are also called No Income No Asset. They are not the same as Stated Income, Verified Asset or Stated Income, Stated Asset.
A No Doc Loan means that you do not have to state your income, employment, or assets. The lender's main criteria for approval are your credit history and the equity in the property. These loans are available with as little as 5% equity or down payment! A No Doc Loan is great for those who have lost
their jobs, recently retired, and newly self-employed people, among others
These loans are based on the value of your home and your credit report. Interest only options are available including the 30 year fixed rate programs.
Great loans for people who have lost their job or in a case where the amount of stated income would seem unreasonable.
No Doc programs are available on loans as great as $1 Mil to 100%
No Doc Mortgage - A No Doc Mortgage requires no employment, income, or assets to be stated on your loan application.
The lender is using your past credit history to determine the probability that you will repay the loan. No Doc mortgages are available to borrowers with excellent credit history.
Despite the fact that you have excellent credit the lender will typically charge you a slightly higher interest rate than if you were providing full documentation of your income and assets.
This loan puts more of the risk of the loan on the lender and so they usually require a lower Loan-to-Value. For example, if you were able to prove job history and income they might let you borrower money up to 90% of the value of your property with your situation, but with a No Doc loan, you might be limited to borrowing up to 75% of the value.
Because there are less documents to be scrutinized with "No Doc" mortgage, the loan process often takes much less time. Some experienced property investors are willing to pay higher interest rates with "No Doc" loans for their simple underwriting requirements and speedy process.
The rate adjustments for "No Doc" loans are substantially higher than standard mortgage loans. If a borrower can fulfill any guidelines within the employment, income or asset criteria, the less risk a bank will carry. Less risk translates to lower rates for borrowers.
A stated income loan and a no ratio loan are different that obtaining a no doc mortgage. A stated income loan is where you list your employment and that is verified and you state the amount of income that you make and you do not need to document it. A no ratio loan is where you list your employment and it is verified but you do not list or verify any income at all on the loan application and no debt to income ratio is calculated. With a no doc loan you simply do not list anything about employment or income and neither is verified either. A stated income loan is a loan that just eliminates the need to document the amount of a borrower's income. An experienced mortgage broker can help you find which program is the right one for you and insure the best rate for you.
A NO-DOC loan also known as NINA "No Income No Asset" loan is good to use when you cannot verify the existence of a job or assets. Retired people commonly use this loan as much information is not verified through the loan process. However, the NO-DOC loan does come at a higher interest rate.
It may be a good idea to explore all options available, as the No-Doc loan generally has the lowest LTV/CLTV allowed, and the highest interest rate when compared to other document types.
No Income Verification Mortgage Loans - The "no Income Verification" mortgage feature is designed specifically for self-employed, non-salaried or commissioned borrowers as well as salaried borrowers. This feature eliminates the need to verify earned income, although assets and unearned income must still be verified. This feature is offered on several of our Lenders fixed rate conforming and non-conforming products.
No income Verification mortgage loans are a very powerful tool for consumers who are self-employed. Most self-employed people write off a lot of their income through various deductions and expenses and when it is all said and done, their actual adjusted gross income is considerably lower than what their gross sales were. This is one reason why it is hard to always document what a self-employed borrower's income level is at. Thus a no ratio, no income verification loan is a great product for this type of borrower. You will normally list your employment information on the loan application and then simply leave the income section blank because there will be no verification of any income and thus your debt to income ratio will not be calculated. While this program is very good for certain types of borrowers, keep in mind that it is also a higher risk to a bank and there will be a minimal increase to the interest rate for this type of loan.
No income verification mortgage loans are not meant to be used by borrowers or mortgage professionals to falsify income in order to purchase a more expensive home. Falsifying income on a mortgage application is a federal crime that is punishable by law.
It is beneficial to show assets in savings to get more favorable terms with a no-income verification loan.
Certain Stated Income loan programs also have no income verification features, however when you state your income it must be deemed "reasonable" for your profession, title, and experience or number of years in business.
This is often referred to as a "No Ratio" mortgage. Income is not disclosed but employment is typically verified.
No Income Verification loans are typically for Self Employed borrowers who do not have much income documentation. These loans are usually approved upon proof of reserves.
No Income Verification Mortgage - No Income Verification Mortgage is a type of loan program in which the loan applicant discloses the amount of his income, but is not required to prove it to the lender bank. In other words, the applicant does not submit paycheck stubs, W2s, tax returns and the like throughout the loan process. The loan application is underwritten base on the borrower disclosed income and other qualifying criteria.
These types of loans are great for people who have hard to document income, are self-employed, and/or are commissioned employees. No income verification can be done by simply stating your income on the application and not providing the paperwork associated with it. Also, they can be done as a no ratio loan and your employer info. is written on the loan application but no income is disclosed whatsoever. Finally there are no doc. loans where no employment information and no income is completed on the loan application anywhere at all.
No Income loans were designed for people with an income, but the income may fluctuate due to investments or other factors. It was also designed for high income people, that are willing to pay a higher rate, for a No Income Mortgage to maintain their financial privacy. No Income will be listed as NINA (No Income No Assets), NIVA (No Income Verified Assets) or NISA (No Income Stated Assets).
The Debt-to-Income ratio of No Income Verification Mortgages is calculated based on the income disclosed on the loan application. Because of higher default risk with No Income Verification home loans, the interest rates may sometimes be higher. However, for home buyers with hard to prove incomes, a No Income Verification loan with a slightly higher interest rate may prove to be the savior in their quest for homeownership.
Reduced Documention Loans - There are many programs available that are for people who may not qualify for the standard full documentation required by many different lenders. Some of reduced documentation loans compensate for the lack of supportive documentation that may need to be required.
Some of the examples are as follows:
Stated Income, Verified Assets or SIVA
Stated Income, Stated Assets or SISA
No Income, No Assets or NINA
True No Doc
Another example of reduced documentation, or alternative documentation, is using 6, 12 or 24 months bank statements to verify income. With a bank statement program most lenders will add up the total amount of the deposits for said number of months and then divide that total by the total number of months being used and they will use this amount for your average monthly income. Some lenders will only use a percentage of the avg. monthly income calculated but most lenders will use the full amount.
If your credit scores are high enough many lenders will offer your reduced income documentation. This reduces the amount of documents needed to prove your employment history, income, or assets. Ask your Preferred Mortgage Professional if your credit qualifies for a "rapid" processing feature.
Many lenders even offer reduced documentation loans for borrowers who have salaried, W-2 type employment. Why would a lender do this? In addition to the salary, the borrower may have other income which cannot be documented. Examples of such income include a side business, room rental, income from loans to family or others and many other situations.
Self Employed borrowers typically use reduced documentation loans due to tax deductions reducing the actual income/profit of their businesses.
Cash tip earners also use reduced documentation loans since their cash income is not documented.
The Reduced Documentation loan is geared toward the self-employed borrower and those whose work situations don’t fit the standard mold. It reduces the amount of paperwork you need to gather, eliminating many of the steps required when applying for a loan.
Reduced Documentation loans are for borrowers that have unverifiable income or assets. Reduced documentation are also for borrowers that do not want the hassle of locating documents or who want to keep their information private. They are willing to pay a premium for this usually paid for with higher interest rates or points.
Stated-Income Stated-Assets mortgage is a type of mortgage program in which the borrower does not need to furnish proof of his income and assets. In other words, no paystubs, W2's, tax returns, bank statements, are needed to document the borrower's financial ability to repay the loan. The applicant's income is merely disclosed, or stated, on the Uniform Residential Loan Application.
A Stated-Income loan for a self-employed borrower means you do not have to provide income documentation but you do have to provide proof of employment. Past two years business license will usually suffice.
Choosing a reduced documentation loan should not be used in order to afford more of a house than you would be able to on a full documentation loan. These loans are designed to accommodate those customers with hard to prove income.
When your scores are high enough the lender may even offer a reduced documentation program at no additional cost to you. They look at the higher scores as you being responsible enough to know what you can afford and what you can not. Also the higher scores equates to less risk for the lender.
When using bank statements to qualify for a limited documentation loan you typically can use your personal bank statements up to 100% of the deposits over the specified period of time (6, 12 or 24 months) and when using business accounts it is typically 75% to 80% of the deposits.
Reduced documentation loans are not an opportunity to falsify income in order to obtain larger loans. This type of mortgage fraud is being more closely investigated by lenders and the FBI.
Often the lenders offset their risk with making these loans by increasing the interest rate or reducing the LTV.
Many times if your credit score is 720 or higher, you can obtain a reduced documentation loan for the same rate as if you fully documented your income & assets.
A Stated Income Loan requires less paperwork than normal for approval. The income is stated on the application. Tax returns, w-2 forms, and pay stubs are not required. The stated income should be reasonable for your occupation
Some reduced doc programs only need 6 months worth of bank statements.
A reduced documentation loan is also known as a Lite Doc Loan. One of the purpose's of the reduced doc loan is to speed up the processing and underwriting time and to also help self employed borrowers obtain a mortgage to purchase property.
No Documentation Refinance - No Documentation Refinance home loans allow borrowers who find it difficult or disadvantageous to document their income to qualify for competitive mortgages without providing any Income or Asset documentation.
These types of loans are ideal when personal information, regarding assets do not want to be disclosed for privacy reasons.
This type of loan can also be used to streamline the process...
When applying for a no documentation loan, be sure to ask your mortgage professional what types of altermative to full documentation loans they offer. You may find that you qualify for a program that is an alternative to a full documentaion loan that will give you a much better rate than a true no documentation loan. i.e.- limited doc, stated, stated/verified assets, etc.
True no documentation loans temd to be priced the highest when it comes to interest rate.
Although many lending standards for no-doc loans have tightened as of late, there are still many no-documentation loan programs available.
Many borrowers "think" that they want a 'no documentation' loan, when in actuality they need a 'no income verification' loan.
A 'no income verification' can refer to a 'stated' loan program, where employment is verified, but income is not.
Chack with your mortgage professional at 877-410-6663 or firstname.lastname@example.org to see which would best fit your needs.
In addition to no documentation loans, stated income loans, no ratio loans, and full income documentation loans some lenders will also offer a bank statement income documentation program. A bank statement program will total up your deposits for a specified period of time, usually 6, 12, or 24 months and then divide by the corresponding number of months and then they will use this figure for your average monthly income. This may be a better alternative to a no doc loan or a stated income loan if you can verify a stable job history and enough money coming in to qualify you.
There are actually programs available that will give you normal rates with less required documentation. These programs however are usually capped at 80% of the property value and require credit scores of 720 and higher.
No Documentation Home Loans - No Documentation Home Loans may be an excellent choice for borrowers who have difficulty documenting or even stating their income.
They are also good options for people who are in between jobs who need to use their cash equity. No job is provided with most no documentation loans.
Generally interest rates for no doc loans are higher. But borrowers with excellent credit and not leveraging their home to the max can often get a no doc loan for the same price of a full doc loan.
No documentation loans are good for people who recently became self-employed and don't have the traditional 2 years of being self-employed required by most lenders. No doc loans are also good for people who may have switched over from a salaried job to a commissioned job and they don't have the traditional 2 years history of being a commissioned employee.
These types of loans are ideal for people who recently changed careers, and for those whose personal financial privacy is needed.
No Ratio Loans - No Ratio loans do not require income to be stated on the application nor is it verified. The No Ratio loan does not take into consideration your debt-to-income ratios. This type of loan is perfect for someone that has high debt ratios. You can get up to 100% financing with no ratio loans depeding on your credit.
Even though incomes are not disclosed by the homeowner or verified by the lender, the source of income, the homeowner's employment, is still verified.
No Ratio Loans are actually much easier to process for everyone involved in the transaction because there is less paperwork. You have no income documentation/verification along with no assett documentation/verification.
This is a great program for getting around ratio issues. Especially if you can't "state" income due to job type and not being able to "state" a high enough, beleivable income.
This is also great for investors that have good income but ratios are out of whack due to "negative rent" on other investment properties.
A no ratio loan typically carries a slightly higher interest rate due to the fact your income is not a factor in the loan qualification process.
You are responsible for providing an accurate figure when the loan officer ask's for your income amount. The loan officer should not coach you or fill in the amount for you. If the loan is audited and fraud is discovered you and or the loan officer can be held accountable under the law.
These loans are usually only available to borrowers with very good credit scores or borrowers who are borrowing a lower percentage of the value of their property. The underwriting theory would be that the added risk associated with not factoring the income ratios is offset by the good credit or low loan to value.
Many property rehab projects, or quick construction projects are financed with no ratio loans.
Borrowers with good credit history could qualify for no ratio loans. Often 100% financing is offered by many lenders, however, the interest rates are always higher than the loans with less than 100% financing.
No ratio option allows borrowing more than a borrow would normally qualify. So, it is important for each borrower to determine how much they could truly afford to prevent potential personal financial disaster.
No ratio is an excellent option for self-employed borrowers, who can actually afford the payments, but who have problems documenting the income. For example, a businessperson who owns ten stores will have difficult time documenting the income even though his/her income is high enough to qualify for a fully documented loan program.
No ratio loans are great for investors, individuals who do not want to deal with the hassle of providing a lot of income documentation, borrowers with potentially higher than normal debt to income ratios, borrowers who have hard to document income, borrowers who are self employed or commissioned, and many other home loan scenarios. Keep in mind that along with the reduced documentation you will generally be required to pay a higher interest rate which equates to a higher mortgage payment. Ask your mortgage professional to show you the difference in rates and payments between utilizing a full income documentation program and a no ratio program.