No Doc loan
A no doc loan or no doc mortgage is a loan that’s more geared towards individuals who have a difficult time proving their income. This especially applies to those who are self-employed.
This loan has its drawbacks, one of which is that the borrower will pay a higher interest rate.
There are a handful of different no doc loans including SISA (Stated Income, Stated Assets), SIVA (Stated Income, Verified Assets), NIVA (No Income Verification, Verified Assets), NINA (No Income, No Asset Verification).
For a SISA, an application will disclose their annual income and assets on the application, and the lender agrees to the figures that have been provided. SISA has been reformed, and today they are mostly used by people who are looking to purchase an investment property.
For SIVA, an applicant verifies their income and assets. The lender in this case will look into their income for the past 6-24 months. This loan is best suited for self-employed borrowers with high net worths, or for people who get paid in cash like restaurant servers.
For NIVA, an applicant doesn’t have a job or is retired, but they have assets. This loan is geared towards retirees who have money but just aren’t working any longer.
Lastly, for NINA, the applicant will provide no proof of income or assets. The applicant simply provides their social security number, their down payment, and the property they would like to purchase. The lender still has to conduct good-faith research on applicants who fit into this category.
From the moment you start an application to the day your loan closes and beyond, you can depend on Napa Finance to be on your side. We’re here to help!