No Doc Loans
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.