Buying a house in the United States can be a dream that is truncated if you do not have all the necessary documents at hand to process a mortgage loan. The good news is that you should not be discouraged, there is a viable option for all these people, which is called “mortgage without documents”. In Solo Dinero we are going to explain what it is about.
An undocumented mortgage is ideal for those people who do not have a fixed income. They are also called mortgages without income verificationwith low documentation or mortgage of declared income.
“These home loans allow consumers to qualify where traditional loan requirements would prevent them from buying or refinancing a home.Jamie Cavanaugh, vice president of disclosure for the Association of Independent Mortgage Experts and president of Amerifund Home Loans, told The World Report US News.
What is involved in processing a mortgage without documents is basically that the borrower you are not required to require standard income documentssuch as pay stubs, W-2 forms, and tax returns. This does not mean that you should not check how much money you earn to find out if your credit is approved, but rather they allow you to present other types of options, such as bank statements, to name one.
While some lenders began granting mortgages without the need for proof of income in the 2000s, this is not very common, but it is happening today: there are options for everyone. What you should be clear about is that these types of mortgages establish initial payments and their interest rates are usually much higher.
“Self-employed consumers are excellent candidates for alternative documentation loans like the no income verification mortgage,” Cavanaugh told El World Report US News.
In addition, says the expert, the reality is that self-employed workers can afford higher mortgagesas they have access to a variety of tax deductions that are related to their businesses.
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