Income Documentation

NINA, also referred to as No Income No Asset, loans are mortgage loans in which No income and No assets are listed on your resdiential home loan application, also called a 1003. There will generally be a small rate adjustment made to the interest rate due to the higher risk to the lender for allowing this type of income documentation. A verification of employment will still need to be conducted to verify your job history and length of time on this current job.

SIVA is a loan program in which the lender allows you to state your income on the 1003 without verifying with pay stubs and tax returns. You will be required to verify your assets that you have included on your 1003 application. The SIVA loan requires verification of employment, but not income.

A true No Doc loan will not require you to verify your income and assets. You will also not be required to verify your employment history, rental history, and any other thing that is normally required of you when obtaining a new mortgage. Credit score requirements are higher on these types of loans, because of the risk involved for the lender. You will also be subject to a slightly higher interest rate with these loans, also do to the risk factor.

A No Ratio loan is a loan where the debt to income ratio is not calculated because the borrowers income is not stated. The debt to income ratio is one of the determining factors for a loan approval.

You calculate the debt to loan ratio by dividing your total monthly payments by your total monthly pre-tax income. If the debt to income ratio is above 40%, it is difficult to get a loan without assets and clean credit.

This type of loan is good for borrowers who have larger than usual debt but substantial assets.

No Income No Assest Loans are great for Part-Time, Cash-Tip Earners, and Temporary Employee's. If you fit within the FICO guideline's than this might be the loan for you and your family.

SISA - Stated income and stated asset loans are loans that allow you to state your income along with stating your assets. The purpose of this type of loan is documentation relief. Self employed, investors, cash- earners, and tip earners sometimes find this type of program perfect for their needs.

Alternate Documentation mortgage program is a type of income documentation loan designed for home buyers who are self-employed, on commissions, or are not paid on a regular basis. One popular Alt Doc mortgage plan is the "bank statements loan" offered by non-prime banks, where the lender uses the amount deposited into the home buyer's checking or savings accounts over the most recent 6 to 12 months as basis for income calculation.

A Stated Income Loan requires less paperwork than normal Income Documentation for approval. The income is stated on the application. Tax returns, w-2 forms, and pay stubs are not required. The stated income should be reasonable for your occupation

» DISCLAIMER: The information contained in this article on 'Income Documentation' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.