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