No Income Verification Home Equity Loans
No income verification home equity loans are a great way to obtain a second mortgage without submitting a long, detailed income stub. While you do need to have excellent credit and a steady job, these loans often require you to have certain assets. They also came under fire after the mortgage crisis, when many banks discontinued offering them. Read on to learn more about these loans. NIVA, SIVA and NINA are all terms that may be unfamiliar to you.
NIVA
The SIVA, or stated income, verified asset, home equity loan, is a type of no-doc loan. It allows borrowers to use the value of their assets as collateral, rather than requiring them to provide proof of income or assets. However, the loan is more expensive than a traditional mortgage because of the lack of documentation required to qualify. The SIVA, or stated income, verified asset, home equity loan, is primarily for retirees and investors who have little or no income and large amounts of assets.
A SIVA loan is particularly useful for people with a difficult-to-document income and verifiable assets. It is possible to obtain a home equity loan based on income from tips or gratuities. A personal bank account may be required to prove that the income is legitimate. If the loan is for debt consolidation, it is important to make sure that the monthly payments will be lower than what you currently owe. In addition, a home equity loan may also offer longer terms than your current debts.
SIVA
The SIVA home equity loan is a form of a no income verification mortgage that can be beneficial to many individuals. People who are self-employed or have assets that are hard to verify may be able to benefit from this type of loan. While it is important to have a stable income, lenders will consider your assets when approving your loan. The interest rates for this type of loan are higher than a standard 10-30 year fixed mortgage, but a SIVA mortgage is still an excellent option for many individuals.
The SIVA home equity loan is similar to a SISA loan. While you are not required to verify your income and assets, you will need to provide documents that demonstrate your assets. Bank statements, investment accounts, asset statements, and any other financial documents that verify your net worth are all examples of the types of documentation that lenders require. The SIVA loan is especially beneficial to retirees with significant documented assets, as it does not require income verification.
NINA
No income verification home equity loans are a great way to access the equity in your home. They are easier to qualify for than traditional home equity loans. To qualify for this type of loan, you need a credit score of 700 and at least 20% equity in your home. To get started, learn more about no income verification home equity loans and how they work. Here are some common examples of no income verification home equity loans. No income verification loans are an option for borrowers with poor credit.
No income verification home equity loans can be advantageous if your credit score is good. However, these loans often carry higher interest rates than conventional loans. The interest rates may be anywhere from one to five percent higher than market rates. Even if you have a perfect credit score, you might still be required to provide financial documentation to support your income and assets. You also might have to pledge certain assets in order to get this loan. However, this type of loan is a great option for borrowers who do not have a lot of assets.
Stated income
For those with a low credit score, a stated income loan may be an attractive option. These loans generally require borrowers to provide verification of their brokerage and bank statements, as well as assets sufficient to cover at least six to twelve months of payments. While stated income loans have their place in the lending landscape, they are not without their drawbacks. For example, some borrowers who don’t take a large salary from their employers may find stated income loans too high a risk.
One of the primary differences between a stated income loan and a traditional home equity loan is the amount of documentation needed. While traditional home equity loans require borrowers to present their tax returns, a stated income loan only requires them to show their gross income. A loan’s approval is based on the debt-to-income ratio, which should be below 36%. If you have an extremely high credit score, however, you may still qualify for a no income verification loan.
SISA
SISA home equity loans can be a great option for borrowers who cannot document their income. These loans are often used by self-employed people with hard-to-document income and assets. If you don’t have a bank account for your business, SISA home equity loans are an excellent choice. These loans require no income verification and do not have any credit requirements. These loans also work well for business owners without a lot of documentation, like sole proprietors who operate from their home.
The SISA loan program was originally aimed at investing properties. However, as the housing market began to recover, lenders and consumers began to scrutinize these loans. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 made the market for these loans much tighter. They no longer allow loans for owner-occupied properties, and they now only offer these loans to investment properties. Fortunately, there is a new way to get this type of loan.
