No Income Verification
Loans are available to borrowers who would rather not provide tax returns, or pay stubs. Income is accepted as stated on your application. Only your position and length of employment are verified. Rates for these programs are often equivalent to loans where income is fully documented. Financing for up to 95% of the appraised value is available.
NINA – No Income No Asset
These are often confused with No Income Verification loans. NINA loans require neither proof of income nor assets. In fact, borrowers aren’t required to state or document any information regarding income or assets. These loans are usually best suited to clients who have 30% - 40% equity in their property.
Rates for NINA loans may be higher than fully documented loans especially if equity is less than 35% of the appraised value. Since no income is stated on the application, debt-to-income ratios are not calculated, allowing borrowers to by-pass traditional lending guidelines in order to qualify for a mortgage.
Many people have been able to take advantage of the benefits of home ownership with the emergence of this financing option. 100% financing is currently available for properties with an appraised value of up to $875,000. Expect to pay rates slightly higher than those available for loans where equity is 10% or more of the appraised value.
Less Than Perfect Credit
Loans are available that offer the potential for re-establishing your credit if you pay your mortgage on time. When used for debt consolidation you may be able to reduce your monthly payments. These sub-prime loans may have less favorable rates and terms and frequently include a pre-payment penalty.
If you are not satisfied with this type of financing, we can map out a strategy for your credit and finances that may allow you to position yourself to qualify for an A-rated credit loan in the future.
Adjustable rate loans are available that allow you to customize home financing to match your specific circumstances. Loans are available with initial rates that are fixed anywhere from 1 month to 10 years. These loans may offer the ability to lower your monthly payment or help you qualify for a more expensive home. After your initial consultation you’ll be provided with the information necessary to determine if one of these loans is right for you.
Home Equity Lines of Credit
These loans allow you to write checks against the equity in your home. You pay interest only on the outstanding balance which means your payments decrease as you pay down the principal. You decide when to access your equity.
The interest rate is variable and may have a very high cap not unlike a credit card. These loans can provide a ready source of cash and the interest may be tax deductible. Under certain circumstances an equity line may interfere with your ability to refinance your first mortgage.
Home Equity Fixed Loans
As with a first mortgage, you must take the full amount of the loan when you close. Payments are fixed and do not decrease as you pay down your balance. Interest rates are higher than 1st mortgage rates. The interest may be tax deductible. Under certain circumstances an equity loan may interfere with your ability to refinance your first mortgage.