No document home equity loan
If you do not wish to reveal your income details and other financial information to your lender while applying for home equity loan then it is possible. You can easily take the help of no document home equity loan. The process of taking the no document home equity loan is the same as other secured loans however, the only difference being that you do not have to show any documents to get these loans.
The only drawback associated with these loans is that you would have to pay a higher interest rate. The more the number of documents you provide the lower is the interest applicable on the home equity loan. But since with the no document home equity loan you would not be providing any document you would have to pay a higher interest rate for the compensating the risk that the lender is taking to give you the loan without any verification.
Who opt for no document home equity loan
No document home equity loan is preferred by, people who do not wish to have their financial standing to be revealed in front of the lender. There are many people who might be making the use of an inheritance to take a loan or have their own business.
So if you do not wish to reveal your financial standing you can opt to take a no documentation home equity loan. Lenders offer different programs with no documentation home equity loans so you can choose the one that would best suit your needs and your budget.
Types of no document home equity loan
There are basically three types of no document home equity loans namely:
- No doc loans: They the least documents that are required for buyers that have the best credit history. The borrower has to provide the most minimal documents in order to lock this loan. These would include: general property information and social security number.
- Stated income loans: These are also called as low doc loans and are usually meant for people who work on commission or cash basis i.e. for people who do not have a consistent salary. For these loans the borrower would have to disclose earnings usually for two years, and might need to show tax returns and bank statements.
- No ratio loans: These loans are for borrowers who do not wish to disclose their income and hence there is no consideration for debt to income ratio. For these loans the borrower is supposed to have a good credit and should have enough assets that can compensate for the no documentation.
Lenders for these loans
Some of the lenders offering no document home equity loan s are mentioned below:
Maico Mortgage Loans:
Contact: 25042 Cinnabar, Wildomar CA, 92595, phone: 877-336-2426 (MAICO)
Quicken Loans:
Contact: (800) 251-9080, timings: Monday - Friday 7:00 a.m. to 2:00 a.m. EST Saturday - Sunday 9:00 a.m. to 10:00 p.m. ESTOther Articles
