No Doc Loans Pro

No Doc Loans - A Speedy Alternative

There is a lot of controversy revolving around no doc loans and, as usual, there are always at least two sides to every story.  While some lenders and brokers might try to persuade you to go for a more conventional loan, there are times when no doc loans are the ONLY loans you can qualify for.  If you NEED to borrow money and there is a reason you can’t provide all the paperwork necessary to procure a more traditional loan, then you’re options are pretty limited.  You can either contact no doc lenders or you can waste your time and apply for a conventional loan which you KNOW you won’t get anyway because you CAN’T provide the necessary documentation that would qualify you.

While it is true that no doc loan rates tend to be higher than their more conventional counterparts, it would be wise to consider the fact that those lenders are taking a gamble by lending that money in the first place.  Look at it this way.  You need to borrow money and you can’t come up with all the paperwork that your bank requires.  Remember, the OPERATIVE word here is ‘need.’  You need the money and you can’t provide fifty thousand items on the list your “conventional” lender requires.  Because there are no SOLID paper trails for no doc lenders to follow, they really are taking quite a risk investing in you.  That’s the simple fact.

You have probably heard the old adage, “Something is only worth what people are willing to pay for it.”   Well, people ARE willing to pay higher no doc loan rates because that loan has VALUE to them.  They are in NEED and there is something out there to FILL that need.  That something is known as no doc loans.  Consider someone who is about to lose their home and they don’t have the documentation conventional mortgage lenders REQUIRE before they will underwrite a new mortgage.  No doc refinance loans ARE available and they could mean the difference between losing your home and saving it by paying higher rates.  No one is telling you that you can’t refinance later with a more conventional lender when you have the documents handy that they require.  But if no doc loans save your property, then they would be WORTH what you are WILLING to pay for them.

Opponents of no doc loans will get into a philosophical debate with you every time.  They will be quick to point out that you should have filed your taxes last year, or you should have organized your paperwork better.  They have a whole list of should haves on the ready to attack you with, and you can’t even get a “But I….” in at any cost.  Forget it.  It’s too late now to worry about should have, would have, could have.  You are on a mission NOW to save yourself and there is no time to wait around for that paperwork to MIRACULOUSLY appear in the knick of time.  It ain’t gonna happen.  Get over it and get on with it.

While the decision is ALWAYS yours, please understand that no doc loans, low doc loans, stated income loans and other less conventional forms of loans are available and the higher no doc loan rates might be a small price to pay indeed.  Especially when you need no doc home loans or no doc refinance loans.  Prioritize!  Save your home first and lower the payments later.

No Doc Loans

When a person applies for a loan he or she needs to supply the lender with what is referred to as supporting documentation.  In most cases this usually includes, but is not limited to proof of income, outstanding debts and equity in property or other tangible goods.  For a multitude or reasons, a borrower may not want to nor be able to provide the lender with this information.  Some people believe that withholding information such as tax returns and business expenses protects their privacy.  Sometimes these documents are not available at the time the loan is needed.  In this case they might want to apply for a stated income loan.   When supporting documentation is not provided or available, a borrower may also wish to apply for what is referred to as no doc loans or low doc loans.  Unfortunately, no doc loan rates are much higher than loans carrying supporting documentation.

In recent years no doc loans became a viable alternative to traditional loans or mortgages.  A minimum of documentation was required other than proof of equity and good credit.  No doc refinancing loans are beneficial when applying for a refinancing of an existing mortgage on property.  A no doc equity loan might be sought as a second mortgage while a no doc home loan might be granted for updates or improvements on a residential property.  Also, many no doc commercial loans were negotiated.  Many of these loans were sought for improvements as well as in the purchase of a business or commercial property.

In today’s faltering market, although there is a greater need than ever before, many lenders are reluctant to offer no doc loans.  Thus, a new type of lender begun to arise, commonly referred to as a sub prime lender.  What generally happens is that the lender will finance a no doc loan, a low doc loan or a stated income loan and then seek to sell the loan to a large financial institution or prime lender.   Unfortunately, with the demise of so many large banks and mortgage companies, sub prime lenders have been unable to unload no doc loans and are stuck holding them.  Many of these sub prime lenders are small companies and individuals.  When they are unable to sell those no doc loans elsewhere, their investment capital is tied up for the term of the loan, which in turn prevents them from issuing and selling future loans because of the lack of operating capital.  For these reasons it appears that the demise of no doc loans is on the horizon.

Who knows, the economy may turn around.  But for the moment it may be in the best interest of both the borrower and the lender to forego no doc loans.   If you need a loan and have no other options available to you then just be aware that it may be difficult to find a lender willing to finance such a loan.  And if you are a private lender and willing to hold that loan or mortgage until the market improves then go for it.  Just remember, patience is a virtue.

No Doc Personal Loans

There are many different types of loans out there. Loans are mainly used to support your financial needs when you don’t have the money needed in your bank account for any reason. More specifically, today we are going to talk about those special types of loans, namely the no doc loans. These can also be referred to as no document loans. This type of loan is very different than others, because you are not required to provide almost any financial information. For most of the other loans you will be required to provide a lot of paperwork, since lenders want to make sure you can pay them back. Obviously, they don’t want to just give money away to random people.

Another type of loan, similar to no doc loans, is the low doc loan.  Again, you don’t need to reveal your financial information completely, however, unlike no doc loans where you don’t need to disclose your finances, a low doc loan requires some proof. These two types of loans generally have a higher interest than many of the other more traditional ones. For example, let’s look into a payday loan. It basically gives you money ahead of your payday, and when you do get your pay check, you will have to return the loan with interest. Payday loans require a LOT of documentation, since they solely depend on your current income, but their interest rate will be lower than that of a low or no doc loan. This is because you provide them with all the documents they need to know your current status, so they know whether you can pay back the loan or not. If they figure you cannot pay back the loan, they will simply not lend you any money.

When it comes to no doc loans, since they don’t have any documentation, they don’t know if you will be able to abide with your monthly payments. Therefore, giving out a no doc loan is quite a risky move for the loaner. On the one hand, they risk losing a lot of money from non-payers, but on the other hand they might earn a lot because of the high interest rate that they will charge.

So, even though the low or no doc personal loans end up costing more, many people still prefer these two, either because they like to keep their privacy or due to the fact that they can hide off any “secret” income that they might have and avoid income taxation. Some people might even apply for such no doc home loans instead of a mortgage! In most cases, they will be either business owners or recent graduates who lack a steady source of income to get approved for a common loan.