A no income verification mortgage loan is a type of mortgage that does not require borrowers to provide documentation of their income. This can be appealing for self-employed individuals or those who have fluctuating or hard-to-verify income. It can also be useful for those who want to keep their employment information private.

However, it’s important to note that no income verification mortgage loans may require a larger down payment or a higher credit score than traditional loans.

Today we cover everything you need to know about getting approved for a no income verification home loan.

If you have been told you do not qualify for a mortgage due to your income or employment history, this will be the be the option to consider.

The loan is approved based on credit and reserves. You do not provide any pay stubs, W-2s, or tax returns.

This option is for primary residence and 2nd homes, and can be used to purchase or refinance a property.

For investment property, getting a DSCR loan would be the option to go with. More on DSCR loans for investment property here.

Advantages of Getting a No Income Verification Mortgage

Privacy: No income verification mortgage loans allow borrowers to keep their financial information private. This can be appealing for those who do not want to disclose their income or employment to a lender.

Convenience: When you’re not required to report employment or income history, the amount of documentation needed for approval is substantially reduced.

Home Purchase | No Income Verification Loan

Here is what you can expect when buying a home with no income verification:

• At least 20% down, with 740+ credit and 12 months reserves
• As low as 640 credit allowed, with 35% down payment and 24 months reserves
• Available on 30 year fixed and ARM options as well

Reserves are the number of months of morgtgage payments you have left over in verifiable assets after accounting for the amount needed at closing for down payment, costs, and escrows.

Home Refinance | No Income Verification Loan

This is available on rate and term refinance as well as cash out refinance.

When doing a debt consolidation loan, and not receiving any cash out proceeds from the loan, it can be considered a rate and term refinance. This is a benefit because that allows higher loan to value ratios.

Here is what you can expect:

Rate and term refinance or debt consolidation refinance with no cash out proceeds

• Up to 80% loan to value ratio, with 740+ credit score, and 12 months reserves
• As low as 640 credit score, with max of 65% loan to value ratio, and 24 months reserves

Cash Out Refinance

• Up to 70% loan to value ratio, with 12 months reserves
• As low as 660 credit score, with max loan to value ratio of 70%, with 24 months reserves

Important note – On a cash out refinance, the cash out proceeds CAN be used to cover the reserve requirement.

Here are some steps you can take to increase your chances of getting a no income verification mortgage loan:

1. Improve your credit score: A higher credit score can make you a more attractive borrower to lenders. Having a higher score may increase your chances of getting approved for a no income verification mortgage loan. You can improve your credit score by paying your bills on time, keeping your credit card balances low, and avoiding applying for too much new credit.
2. Consider a lender that specializes in no income verification mortgage loans: Some lenders specialize in no income verification mortgage loans and may be more likely to work with you.
3. Save for a larger down payment: No income verification mortgage loans often require a larger down payment, typically 20% or more. By saving for a larger down payment, you can make yourself a more attractive borrower to lenders and increase your chances of getting approved.

It’s important to carefully consider the pros and cons of a no income verification mortgage loan before applying. While they can be a convenient option for many borrowers, there may be additional requirements that you need to meet.

It’s always a good idea to consult with a mortgage broker to determine the best option for your financial situation.

Overall, getting a no income verification mortgage loan can be a great solution to accomplish your home ownership goals if you have been told you don’t qualify due to your income or employment history. By improving your credit score and having the ability to document strong assets, you can increase your chances of getting approved for a no income verification mortgage loan.

I invite you to reach out.

Get your questions answered.

I encourage you to reach out if you need to get approved for a mortgage with no income verification, or need guidance on your specific loan scenario.

We have been extremely successful with getting borrowers approved, even when other lenders said it wasn’t possible.

If for some reason we can’t help, we’ll do our very best to point you in the right direction.