No Income No Asset
(NINA) is a term used in the Unites States mortgage industry to describe one of many documentation types which lenders may allow when underwriting
NINA programs are reserved for the most credit-worthy of borrowers. This means, among other criteria, a satisfactory mortgage history paid As Agreed (no mortgage lates in the last 24 months), a minimum credit score of 660 and a Loan to Value ratio of no more than 75%. For higher loan amounts the minimum credit scores start above 700 and LTV ratios cap out at about 60%.
Borrowers must also be able to verify they have some source of income based on their status:
The most common way to show a source of income is a current business license. However, in cases where borrowers do not have a business license they must provide the lender with a letter from their Certified Public Accountant
which vouches for the borrowers ability to generate earnings as the CPA has prepared their taxes in the past.
The official title for salaried individuals who cannot present W-2
's or pay check stubs. A verification of employment
(VOE) must still be sent to the borrower's place of employment, where an authorized agent of the employer must verify the borrower is gainfully employed but is not asked to disclose any compensation.
In some cases individuals who are receiving some sort of stipend, such as Social Security
, disability or pensions, are able to qualify for NINA programs. Lender criteria may vary, but in many cases it amounts to a benefit letter from the payor being provided to the lender which outlines the type of benefit paid. In this letter the amount is either not included or blacked out by the borrower.
No Income No Job No Assets
A Ninja Loan is a type of subprime loan issued to borrowers with No Income, No Job, (and) no Assets. The phrase was coined by HCL Finance as a name for one of their finance products. They were especially prominent during the United States housing bubble of the 2000s but have gained wider notoriety due to the subprime mortgage crisis in July/August 2007 as a prime example of poor lending practices.