What Are the Advantages of No-Documentation Mortgage Lenders?


Quick Answer

The no-documentation loan is fast, efficient and ideal for those who have trouble proving their financial history or income, as stated by Mortgage 101. There are a variety of so called no-documentation loans that require little to no documentation for income, employment or assets.

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Full Answer

Businesses purchasing property as investments, business owners and freelancers all tend to have trouble getting approved for a traditional home mortgage. An alternative option that many are turning to is the no-documentation loan, which usually requires some documentation but not nearly as much as other traditional mortgages. Most small businesses can take advantage of the State Income loan which allows applicants to submit other kinds of proof of financial verification, such as a tax return or bank statement, according to Mortgage 101. The standard No Income, No Asset loan is a great option for those who prefer to keep their financial information private, as stated by BankerBroker.com. This NINA loan requires an excellent credit history, a down payment amount and the property appraisal.

In general, these loans make it easier for freelancers, businesses and investors to get approved for a home loan when they cannot provide W-2s or show that they have an employer. The low documentation requirement makes the process faster and more streamlined, taking a lot of stress out of the process too.

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