No Documentation Loans - The Option For Independent Contractors And The Self Employed

Are you self employed, an independent contractor, or a tipped employee? If so, then you know how difficult it can be to find a loan or a mortgage. When you cannot prove your income it becomes very difficult to get a good mortgage, but there is a solution and it is called no documentation loans. Here are the situations to use a no doc loan in.

If you are self employed and you do not claim all of your income for whatever reason, then a mortgage that does not make you prove your income is perfect. This is usually called a stated income program. You will basically say you make a certain amount and the mortgage company will not verify the information with paycheck stubs or W-2 forms. This will get you a mortgage without any trouble.

Next, if you are an independent contractor and get paid mainly in cash, then it can be hard to prove what your income is. If this is you, then you are a perfect candidate for a stated income or no documentation loan. This will give you the leverage you need to get a loan and get it fast. Plus you will not have to worry about proving where you work or your income.

Last, if you are a server, bartender, or any other tipped employee, then you will have a lot of trouble proving your income because you probably do not claim all your tips. This will be the obstacle in your way to the mortgage you need. In order to get the mortgage you need you will have to use a stated program that allows you to say what you make with no verification whatsoever.

Using a state program is not a bad thing. It will have a bit higher rate and will be a little more risky for the mortgage company, but the no documentation loans may be your only option. If this is the case do not be afraid to go this route as it is still a mortgage, but it is designed for these special situations.

Author: BENJAMIN EHINGER