A home equity loan with no income verification is a second home loan that does not require you to submit income documentation to qualify for the loan. This type of loan is ideal for homeowners who need a home equity loan but have difficulty documenting their income.
Most borrowers with hard-to-document income are freelancers or commission employees. Consumers in these categories may have high incomes, but they have many business-related deductions that they write off on their taxes. This is good, on the one hand, as it reduces taxable income and therefore the amount of taxes owed; However, when it comes to obtaining a home loan, it can be detrimental as most lenders use the average of your net taxable income from the last 2 years (the amount remaining after all your deductions) to determine your loan figure. income for rating purposes. This can cause you to have a debt-to-income problem if you have a high debt load and thus prevent you from qualifying for the loan. However, with a home equity loan without income verification, your gross income can be used for qualification purposes instead of net income.
To qualify for a home equity loan without income verification, in most cases, you will need good credit and a high credit score. Expect to pay a higher rate for this type of loan compared to a traditional loan where you have to document your income. Also, even though a loan without income verification does not require you to document your income, some lenders may require that you have a certain dollar value of available assets that must be verified. However, not all lenders have this requirement; some offer a program called NINA, which means “no income or assets,” which means you don’t have to document either. Loan rates and guidelines vary from lender to lender, so it’s a good idea to shop around to increase your chances of getting the best deal available to you.
For more information on home equity loans without income verification, or to compare rates and programs of home equity loan lenders, visit http://www.equityloansource.com