A no income verification mortgage is a way for the self employed to find a mortgage without verifying income. It sounds like an easy remedy, but actually obtaining one is going to be a job in itself. There are steps you can make to make qualifying much easier- but it will take some work.

Trying to get a no income verification mortgage with a poor credit score is like leading a camel through the head of a pin- it’s just not going to happen unless you have extraordinary circumstances. In fact, you often need a credit rating that is above par just to be considered. A rating of 710 or higher is the best case scenario, but you might be able to slide by some lenders with a score of 675 to a score of 700 if you’re lucky.

Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can’t be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.

No-verification mortgage loans will not have a friendly interest rate. Although you would think it would be outrageous, lenders won’t charge something that is impossible to pay- they want you to be able to pay them, after all. Do expect to pay more, however, and do keep in mind that if you stay current on payments your credit rating will rise, and you could qualify for discounts.

Lenders will not give you a large loan if you don’t have a high income. Because this rule means you might not be able to afford a mansion, some think that it’s fine to lie on the loan application and state a higher income. This is a rookie mistake that will cost the applicant dearly. Always triple check your methods in trying to estimate your actual income, and make your projects a bit lower than you estimated. Otherwise you could lose your home.

The economy isn’t doing so hot as of current, so don’t be surprised if you qualify and still get denied for a no-verification mortgage loan. The trick is to find a lender that is big enough to take the risk, qualify to their standards, and pitch the mortgage loan idea the best you can. Loan officers will sometimes work with you and get you qualified if you can’t apply immediately.

Final Thoughts

There are many lenders out there to choose from, but know that many of them are not open to the idea of a no-income verification mortgage loan. You will have to go through song and dance to get one, so it’s possible if you have no other options.

Learn more on Non-Status Mortgages and Non Status Mortgages.

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