Jerry Goldstein
Posted With Great Pleasure
Cash No Doc Loans
One of the common questions that I have been hearing lately comes from people asking whether or not it is still possible to get no doc loans in the current economic situation. Well, the short answer to that is yes, you can still get one, but there is a longer answer that is not so simple. Hopefully this short article will answer some of your questions and get you on your way to applying for and receiving a loan. It is now late 2010 as I’m writing this so keep in mind that if you’re reading this much later then the situation may have changed, although it should still be fairly accurate.
While it is still technically possible to get no doc loans from some lenders if you look hard enough, the rules of the game have changed. Depending on which lender you’re looking at, what was once called a no doc loan is now actually a low doc loan, and what was once a low doc loan is now requiring just about as much documentation as any regular type of full doc loan. It is also still possible to save some more money by looking for lenders who will not charge you with a lenders mortgage insurance fee.
So, do you really need no doc mortgage loans or is there a better solution for your individual needs? That is the first thing you should be asking yourself, because if you don’t actually need this type of loan then you could be just wasting more of your money. In general, no documentation loans are used by the self-employed, because they are usually unable to conform to the strict requirements that most lenders have for regular loans such as tax returns and other financial statements. But no doc loans are not just for self-employed people. They are actually used by many others, such as people with irregular income like seasonal workers. Basically any type of worker, salaried or otherwise, that does not have a stable and linear source of income, would have a big issue conforming with the requirements as they have been shaped in today’s loan market. Obviously, the reason for that is that as the economic situation worsens, all lenders try to be cautious, and what seemed to be an ideal “catch” yesterday, today looks more like a scam!
As I mentioned in the beginning, this article is only meant to be a short overview of no doc loans that will hopefully get you started and fill you in on a few of the details. If you still think you need this type of loan after reading this, then your next step should be to keep searching online for a good deal that suits you, or simply visit your local bank or other lender and start asking more questions.
Jerry Goldstein
Posted With Great Pleasure
No Doc Personal Loans
For some people there is no choice other than to seek out no doc loans, but for others it is just one more decision to make in the process of getting a loan. So, why should you consider this particular type of loan over the other possibilities? For a start, if you are self-employed or have another unique financial situation, such as being involved in seasonal or other irregular work, then it is quite possible that you won’t meet the requirements of your bank to secure any other type of loan.
Because your bank or other financial institution will be taking an added risk to offer you a no doc loan, it is important to note that you will most likely be asked to provide a larger deposit than is usually requested. Obviously this could present another problem if your particular financial situation doesn’t allow you to make a large deposit, but it is better than simply being told “no”. The exact details and deposit amount will vary a lot depending on which loan provider you choose so, as with all major purchases in life, you will want to take your time researching no doc mortgage loans in your area to find which one will be the best choice for you in the long-term.
The no doc loan rates are almost always quite a lot higher as well, and this will of course be a major decision to make as you shift through all of the loans that are available today. It all comes back to how much added risk the loan provider is taking when they offer a loan to someone who can’t, or just doesn’t want to for privacy reasons, provide many of the documents that would normally be required.
The terminology used, such as low or no doc loan can be confusing sometimes. Low doc loans often require almost as much paperwork as a regular type of loan, and even no doc loans require a few things such as a credit report. But nobody ever said that getting no doc personal loans was going to be simple!
So as you can see, it really is a double-edged sword; you can often get no doc loans in situations where you would normally be denied finance, but you must provide a larger deposit and pay off the loan at a higher than usual interest rate. If you have a choice in the matter, it is usually a better idea to go with a more standard loan.
Jerry Goldstein
Posted With Great Pleasure
No Doc Personal Loans
The banks don’t loan money to just anyone, you need to qualify through a process that involves divulging financial information. If you are unwilling to reveal your financial privacy, then this might be a problem. This however does not mean you will have to go back home empty handed as you can apply for a no doc loan. In short, no doc personal loans are loans where the lender doesn’t require full supporting documentation from the borrower for qualifying. These no doc personal loans are designed for people who don’t want or can’t provide details about their employment or income. With the declining economy, many people have gone diverse and no longer live from a single pay check.
You probably are wondering what happens if you are a high risk borrower? Well, the no doc personal loans cover for this just fine. All you have to suffer is the blunt of tightened repayment period and over the deck no doc loan rates. For some reasons best known to the lenders, there is no other way this can roll out. The same case applies to low doc loan, which is a close variation of the no doc loans where the supporting documentation provided is a bit more but not to the full length as in traditional loans. Much said about the no doc personal loans, how then do you qualify for them?
As the no doc loans require little or almost no supporting documentation, everyone can easily qualify. In some instances, as in the stated income loan, you only need to state how much you earn without offering any proof. NINA loans are a type of no doc personal loans which involves nil verification of income and assets. The acronym NINA stands for “No Income & No Asset verification”. That is how easy the no doc loan as well as low doc loans are. Due to lack of proving that goes into the approval of these loans, they are often perceived as illegitimate, this should not be the case as there are many legitimate reasons why one would want no doc loans.
If you are a new business owner, you may run into problems qualifying for a traditional loan. This is because you will have no credit history the banks can work with. This automatically sets you in the right path for a no doc loan. Willingness to pay the extra interest is a plus. Most of the information provided includes personal identification information and credit score. So, even though you might not qualify for a traditional loan, you should consider this alternative.
