Lenders perceive these transactions as being riskier since they have not substantiated the earning power of the borrower. If you are looking for less documentation and are willing to pay a little more in interest, a no-income program may be your best choice. Contact your loan officer to determine if you qualify. A no doc program provides a borrower with the opportunity to secure a mortgage without disclosing any asset or income information. The rates are higher due to the increase in the loan risk that the lender is taking.
Less information means more risk.
Which translate into higher rates for the borrower. A no-doc loan concentrates on the borrowers credit and the value of the property. Feel free and explore no-doc lending options with your loan officer. An investment property consists of up to four rental units. These mortgages require complete documentation on the borrower and the property.