Hi.. Can someone explain this a little more to me..or answer my question. A no-income verification loan on a house...I mean it's obvious,there is no verification so how do they know you have funds to pay the thing? Do they just accept your word on your current income, etc, etc? Thank ya kindly!
Re: Ooopies Nana, The industry refers to these as "no doc" loans. What they typically require is a large downpayment-usually in the 40% range and the interest rate will be just a bit higher than normal-maybe a 1/2 a point. Also, some banks won't do them for more than 15 years. It really is simple. They want your name, address, phone #, occupation and income and a net worth, and a bank reference. The only thing they usually check is the bank reference. They are protected by the large downpayment. Of course, you still have the normal closing cost-appraisal, title search, etc. Typically, these loans are made to upper income people who need some finincal privacy. Say, an ex-spouse thinks some assets were hidden in a divorce or a business partner thinking you may be living to well. A trick their lawyers use is to subponea the loan documents for income and financial statements that are recent. In a "no doc", they don't exist.
