Here Are Some Useful Facts about No Income Verification Mortgage
No-income mortgages are not offered by many lenders in the United States, due to the high risk associated with it. Such types of finances are ideal for self-employed individuals or businesses with reasonable income. The problem with non-taxable income of such businesses is that it is hard to verify their financial statements. It is difficult to get financing for businesses of the investors who do not have 2 years tax returns with positive net earnings .
No income verification finance
Most lenders do require small businesses to pledge their real estate as collateral. Borrowers must still meet the credit and income requirements if they want to qualify for this type of no income verification finance. Depending on the size of the businesses and the credit rating, borrowers can borrow loans in the range of $500,000 -25 million. The repayment period of such loans is 12 months -8 years.
Limitations of no income verification loans
Borrowers can easily qualify for no income verification mortgage, by stating their income to the lender without the need of physical tax returns or hard proof of income. No income verification commercial loans are given by the lenders to the borrowers at higher interest rates than traditional secured commercial loans. Many lenders have now
removed the no-income verification loans for a mortgage finance as an option. However, there are several private and secondary market lenders who can provide such loan products in today’s markets, but borrowers have to pay larger deposits in order to get their loan approved.
What do you require to show to the lender?
It is important to understand that no two no-income verification finances have the same specifications. Some lenders require a lot of reserves in hand, in order to qualify while others may simply require that the borrower makes a large down payment.
Borrowers may be required to show their profit and loss statements for the past few years (two years minimum) or business license or operating statement if the property will be owner occupied.
Are you interested in availing no income verification real estate finances? If your answer is affirmative then get in touch with Park West Capital. It even provides loans to the business that are new and have not filed taxes or displayed any positive earnings in their first few years in business who can’t source or display their earnings as their income.