Bobs Musings

Not having a way to verify your income will only work against you when trying to obtain a mortgage loan for buying a home. Unfortunately, you will go through a much more arduous process than most, but you will still be able to get a mortgage loan if you have certain qualifications.

Trying to get a no income verification mortgage with a poor credit score is like leading a camel through the head of a pin- it’s just not going to happen unless you have extraordinary circumstances. In fact, you often need a credit rating that is above par just to be considered. A rating of 710 or higher is the best case scenario, but you might be able to slide by some lenders with a score of 675 to a score of 700 if you’re lucky.

All mortgage loans require that you put money down. After all, you won’t look like you are committed to pay the loan if you don’t show that you have something to lose in the process. Do expect to pay a much higher amount down- sometimes as high as 15% or greater if your credit rating isn’t considered impeccable.

No-verification mortgage loans will not have a friendly interest rate. Although you would think it would be outrageous, lenders won’t charge something that is impossible to pay- they want you to be able to pay them, after all. Do expect to pay more, however, and do keep in mind that if you stay current on payments your credit rating will rise, and you could qualify for discounts.

When applying for the loan, be sure to accurately state your income. If needed, state less than you actually think you make. That way you won’t have a problem repaying the loan in the future. Lenders are always wary of offering such loans to someone who says they make more money than they actually make- it’s one of the major reasons loans are defaulted. Be realistic and don’t lie to the loan officer or you’ll soon be out of a home.

The amount of preparations needed to get qualified for a no-verification mortgage loan is going to be stressing. If you can in any way prove your income, take all steps necessary to do so. Lenders are cautious in approving a loan that doesn’t have stable income receipts, and even with all the qualifications you might get denied just because of the current state of the economy.

In Conclusion

There are many lenders out there to choose from, but know that many of them are not open to the idea of a no-income verification mortgage loan. You will have to go through song and dance to get one, so it’s possible if you have no other options.

Learn more about Non-Status Mortgages and No Proof of Income Mortgage.