01 Sep The Benefits of a No Income Verification Loan
Wondering whether a no income verification loan may be right for your real estate clients? You’re wise to ask this question. After all, this alternative type of loan may sound too good to be true—especially if a buyer has been unable to qualify for a conventional loan.
However, the reality is that not only do no income verification loans still exist, but they can offer compelling benefits for buyers and realtors alike.
Read on for a closer look at the benefits of no income verification loans, along with key considerations when helping your clients find the best lender to work with.
What Are No Income Verification Loans?
Before we can get to the benefits of no-income verification loans, let’s do a quick overview of what constitutes a “no income verification loan.”
In simplest terms, this refers to a loan that doesn’t require applicants to provide proof or documentation of their source of income.
Also called “no-doc” loans, “stated-income” loans, or “alt-doc” loans, no income verification loans are an intriguing option for borrowers who may be unable to qualify for a conventional loan, such as people with seasonal income streams or those who are self-employed.
6 Benefits of No Income Verification Loans
Here’s a look at several key benefits of no income loans:
1. Unlike traditional loans, they don’t require recent pay stubs, tax returns, or other documentation for income verification.
2. Besides being ideal for borrowers who can’t (or don’t want to) show proof of income, no income verification loans are also suitable for borrowers with less-than-perfect credit.
3. While traditional loans may involve excessive and time-consuming amounts of red tape, there’s significantly less paperwork involved with no income verification loans.
4. While debt-to-income ratios present an additional obstacle for buyers to overcome with traditional loans, they don’t factor into the no income verification loan approval process.
5. Many no income verification loans lack prepayment penalties. If a borrower finds themselves in the position to pay off their loan early, there are no downsides to doing so.
6. Borrowers are eligible to refinance so even if your initial interest rate is high, you can always lower it later through refinancing, including through both purchase and cash-out options.
No Income Verification Loans with CCIG
It’s important to note that all no income verification loans aren’t created equal. It’s essential to practice due diligence when evaluating lenders to find the best no income verification loan for your client’s needs and goals.
At Commercial Capital Investment Group (CCIG) LLC, we’re delighted to offer all of the advantages included above—and more!—for both commercial and residential investment properties. For more than a decade, we’ve been helping close loans that traditional lenders cannot with no sacrifice of speed or customer service.