We pair homeowners with lending companies that offer stated income second mortgages with no income verification mortgage and bank-statement loans for self-employed and salaried borrowers searching for cash out lending online. Our system can match you with lenders offering great mortgage programs with less documentation required. No income loans are available to borrowers through bank statement and stated income programs
1 Second Mortgage Inc. will help you find a loan that requires less paperwork and less income verifying that often hinders the loan process. We will help secure lending advice so you can see if you qualify to access cash quickly so you can go back to your business. Stop wondering if you qualify for a no verification loan and talk directly with mortgage companies that still offer secured loans with reduced documentation.
Statistics that say housing prices have continued to rise modestly or have fallen only slightly are deceiving, say some real estate analysts, because the stats don't reflect houses that sit on the market for months because their owners refuse lowball offers. Interest rates are beginning to drop again, and refinance loan applications have started to increase as a result. The reduced interest rates could help home values rebound in 2017 and 2018. Many real estate and mortgage industry executives believe that the Trump Administration will loosen lending standards. This could immediately help thousands of self-employed borrowers find a no income verification mortgage that provides quick financial benefits with increased cash flow. As property values begin to rise again, more lenders and banks will loosen the credit standards and income documentation requirements on 2nd mortgages.
Real estate experts report residential price drops of 10 - 15% in the Boston area, suburban New York City, Portland, Ore., and northern Virginia, among other markets. While these drops benefit buyers, economists are concerned that declining values leave homebuyers who bought at the peak underwater and are particularly damaging for those who bought with no down payment. Many more households will fall behind on their mortgage payments and won't be able to bail themselves out by refinancing or selling their homes, says Mark Zandi, chief economist. At worst, this could be the start of something bigger, Zandi says. The housing slump a few years back could be "the most significant threat to the global expansion" among current economic issues, he says.
This is a second mortgage program that lenders offer for borrowers who would rather not have to provide income documentation. This 2nd mortgage allows applicants to state their income on their initial residential loan application. The lending underwriters do not require any documentation nor do they verify the income with the employers or bank. This is a special home equity loan that does not require the borrower to prove income declared on their application. This is most useful for self-employed and independent contract workers who receive a 1099 instead of a W-2 as they would have a difficult time proving their income. Stated income mortgages are the most commonly used and usually the least expensive of the no documentation types of mortgages.
We will help you meet 2nd mortgage lenders that understand that it is difficult for individuals who are self-employed or operate a one-person firm to verify their income. Different types of no income loans are offered including state income or no income verification loans.
A stated income mortgage loan is suitable for borrowers who have no verifiable income and have assets to meet minimum reserve requirements of the lender. The stated income on your application must be reasonable in terms of your assets. Qualifications for no income verification loans require the borrower to have a minimum credit score. When shopping for a 2nd mortgage or no income verification home equity line of credit, check with the lender about minimum fico requirements for stated or no income loan programs.
Mary is a free-lance writer who produces loan articles for consumers. You can read more home loan articles online. If you would like more financing program info about home equity lines of credit and second mortgages, please visit our site. For updated loan terms please visit our home page.
Many homeowners are saying that they are saving money by paying off debt and getting their monthly mortgage payments reduced with an equity loan featuring a fixed interest rate. We suggest that you examine revising your credit line or HELOC with a fixed interest mortgage is suggested if the interest rates are variable.
If you are self-employed and/or have non-W-2 income, you may wonder how you can qualify for a home loan. If you do not have W-2s, paystubs, or show sufficient income on your tax return, how can you qualify for a mortgage? Do you always need a stated income mortgage? The answer is no.
One option is the bank statement mortgage that is becoming more common in recent years. With a bank statement mortgage, you provide many months of your bank statements instead of tax returns to prove your income. Bank statement mortgages are most common today with the self-employed, people who own their own businesses, or borrowers with seasonal income, such as real estate agents. In some cases, you may be required to give a profit and loss statement for your business that was prepared by a licensed tax professional.
A bank statement mortgage offers benefits for borrowers, but it has different qualification guidelines and terms than a standard mortgage. Bank statement mortgages are not qualified mortgages. So, lenders can set their own qualification guidelines instead of using a standard set of requirements that most regular lenders use. Thus, borrower qualification requirements have more flexibility than for other lending programs and can vary quite a bit by lender. For instance, some lenders might ask for different documents from you, or have different qualifications for credit score and debt to income ratios. Some lenders may have a higher or lower down payment.
Usually bank statement loan programs require at least 12 months of bank statements, but some lenders may require two years of statements. This depends upon your credit and finances.
A common question is whether you must provide personal or business bank statements or both. This depends upon the lender and how you organize your finances. For instance, if you are self-employed and do not have separate business accounts, most lenders will want your personal bank statements for the last 12 months, and a profit and loss statement for your business for the last year. Lenders will look at your P&L statement to ensure that your costs are reasonable and that the profit in your business reflects what is in the bank accounts.
If you keep personal and business bank accounts separate, you might need to provide a year of statements for both types of accounts. But in some cases, lenders will require a shorter history of statements for your business accounts. A P&L statement for your business may not be needed, but you could provide one anyway to give more support to your mortgage application.
Lenders usually will calculate your average monthly gross income over the time period that is reviewed based upon the provided bank statements. For instance, if you put $8000 into your bank account every 60 days, your gross income each month is determined to be $4000. The same approach will apply if the deposits into your accounts are seasonal/inconsistent. For instance, if you work only three months per year and make $20,000 deposits three times into your account, your gross monthly income is $5000. The lender will use this figure as well as your debt payments each month to determine how much mortgage you can handle.
Credit score requirements will vary, but if you have a low score, you probably will pay a significantly higher rate. As far as loan to value, this largely depends upon your credit profile. The higher your score, the higher the LTV ratio will be. For example, if you have a credit score of 720, you may only need to make a 10% down payment. But someone with a 580-credit score may need to come up with a 30% down payment.
Lenders may allow up to a 50% debt to income ratio, depending upon your income, and credit profile. You also will probably need to have three to six months of cash reserves wen your loan closes. If you have a mortgage payment of $3000, you may need to have $9000 in savings to close the loan.
Rates can be up to 1% higher with a bank-statement on no income loan than for a standard mortgage.
Overall, a bank statement loan is a viable option for some self-employed and seasonal workers. But you will need to do some shopping around to find the right program for you, as the qualifications and features in these non-QM loans vary widely.
References: https://www.freeandclear.com/programs/how-bank-statement-mortgage-works.html