What are no-doc loans?

Asked by Jimmy, Staten Island, NY Thu May 23, 2013

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Joseph Runfola’s answer
Joseph Runfo…, Agent, Staten Island, NY
Fri May 24, 2013
Hello Jimmy,
A No-Doc loan (abbreviation/slang for: No Documentation Loan) refers to a finance product commonly offered by a mortgage lender to consumers who cannot qualify for normal loan products, or do not want to give up their financial privacy. No Documentation applicants require a larger deposit either through equity in security or personal savings. Income and assets aren't disclosed on the loan application and employment isn't verified. However, a credit check is typically required as lenders are counting on the fact that the borrower has a good credit history. No doc mortgages usually fall into the Alt-A classification, and tend to carry a higher interest rate and require a higher down-payment than a prime mortgage.
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, ,
Fri May 24, 2013
They are mortgage that I hope the IRS scans for in the public records.

Good luck,
Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
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Bella Grossm…, Agent, STATEN ISLAND, NY
Fri May 24, 2013
There is currently only one bank in New York , New Jersi area that does these loans, they require at least 40% down and the person has to have its own busness for at least 2 years.To verify this information you need to speak to a mortgage broker that can give you more details
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Tim Moore, Agent, Kitty Hawk, NC
Thu May 23, 2013
They are a thing of the past and maybe of the future again. They are the loans that got many into trouble and made them lose their homes. Rather than a lender checking to see if a buyer really makes the income they claim, they didn't ask for verification and required no documentation to prove the income - No Doc Loan. The lenders don't do them anymore, but they will again some day in the4 future. They stopped issuing No Docs in the late 80's but allowed them again in the 90's.
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