No Doc mortgage loans allow homeowners to refinance their current mortgage without documenting their employment status, assets, and income to the lender. There are a number of reasons for doing this: some people want to protect their privacy, others cannot document their income due to the type of work they do, the self employed are one such example.
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No Doc Refinance Loan Availability
Are no doc refinance loans available in today’s market? The short answer is no; however, depending on your situation there may be “comparable” government refinance programs that could get you qualified. Be sure and check out my articles about the Home Affordable Refinance Program, HARP 3.0.
The mortgage documentation you are able to provide when applying for a mortgage about your financial situation the better your interest rate will be. There are circumstances where a homeowner cannot provide or chooses not to provide all of the documentation traditional mortgage lenders want. For these homeowners refinancing their mortgages with a No Doc or even a Low Doc mortgage will provide options that might not be possible with a traditional mortgage lender.
For individuals who are self employed or do not want to disclose their income and assets for privacy concerns No Doc mortgages provide financing at a premium interest rate. Mortgage lenders that specialize no doc refinance loans may also require that discount points paid up front to qualify for the loan. The process of applying for a No Doc mortgage is simple: you will simply provide your name and social security number along with the details of your property and the mortgage lender will process your application based on your credit. There are three basic categories of No Doc Mortgage loans:
No Doc Mortgage Loans
The actual “No Doc” mortgage loan is the closest you will find to actually providing “no documentation.” If you opt for a no doc refinance you will provide the lender with general information about your home and existing mortgage. The lender will base their decision for approval almost solely on your credit rating.
Stated Income No Doc Mortgage Loans
Stated Income Mortgages are also referred to as Low Doc Mortgages. These mortgages are a popular refinancing option with the self employed. To refinance your mortgage with a Stated Income Mortgage you will need to provide the mortgage lender you earnings going back two years. This documentation is usually provided in the form of tax returns, pay stubs, and bank statements. Because you are providing the mortgage lender some documentation to go by, State Income Mortgages come with lower interest rates than the No Doc Mortgage in the previous example.
No Ratio Mortgage Loans
This type of No Doc Mortgage is for the homeowner concerned about the privacy that does not want to disclose their income. This homeowner has excellent credit and employment history along with sufficient assets to approve the mortgage without providing proof of income.
Frustrated by the lack of options for your no doc refinance? You’re not alone. There is help for available for you from government refinance programs.
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You can learn more about getting your no doc mortgage refinanced with today’s low rates by checking out my free Underground Mortgage Videos.
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