| A no income verification home equity loan is a second | | | | With a no income verification home equity loan, |
| mortgage loan that does not require you to provide | | | | however, your gross income can be used for |
| income documentation to qualify for the loan. This type | | | | qualifying purposes as opposed to the net income. |
| of loan is great for homeowners who need a home | | | | In order to qualify for a no income verification home |
| equity loan but have hard to document income. | | | | equity loan you will, in most cases, need good credit |
| The majority of borrowers with hard to document | | | | and a high credit score. Expect to pay a higher rate |
| income are either self-employed or commission based | | | | for this type of loan as opposed to a traditional loan in |
| employees. Consumers who fall under these | | | | which you have to document your income. Also, even |
| categories may have high income but have a lot of | | | | though a no income verification loan does not require |
| business related deductions that they write off on their | | | | you to document your income, some lenders may |
| taxes. This is good on the one hand as it reduces the | | | | require that you have a certain dollar value of assets |
| taxable income and thus the amount of taxes owed, | | | | on hand which must be verified. Not all lenders have |
| however, when it comes to getting a home loan it can | | | | this requirement though - some lenders offer a |
| hurt as most lenders use the average of your last 2 | | | | program called NINA which stands for "no income no |
| years taxable net income (the amount left after all of | | | | assets" meaning you do not have to document either. |
| your deductions) to determine your income figure for | | | | Loan guidelines and rates vary from lender to lender |
| qualifying purposes. This may cause you to have a | | | | so it is a good idea to shop around to increase your |
| debt to income ratio problem if you have a high debt | | | | chances of getting the best deal available to you. |
| load and thus keep you from qualifying for the loan. | | | | |