Shannon Hurn asked:




No doc mortgage loans are becoming more and more popular due to the fact that they do not require the borrower to provide proof of their income or employment status when applying for their mortgage. They are available from a number of mortgage lenders, though you may find yourself having to search a bit harder to find the best deals.

Who Needs a No Doc Loan?

No doc mortgage loans are great for those who, for one reason or another, cannot prove their income. For example, you may have made your money earlier on in life through investments, or perhaps you a self-employed or even unemployed. They are also used by people that do not want to divulge their personal financial details. It is a little known fact that while not everyone requires a no doc loan they are actually open to anyone that wants to apply for one!

Things To Know About a No Doc Mortgage Loan

When you sign up for no doc mortgage loans your income or your assets will not be included on the mortgage form. The bank may check your reliability via your credit score as a way of determining whether you are a trustworthy borrower as well as perform a property appraisal.

Whilst no doc mortgage loans can be an extremely convenient option, there can be a few drawbacks. For example, the lender may charge you a higher interest rate than on a traditional mortgage as a way of protecting themselves. You may also have to make a higher down payment at the time of purchasing your home. However, no doc mortgage loans are still often the best option for many people.

Fred

Tacity asked:


My husband and I are in our 30s. We have a mortgage that is unbearable but we have manage to make the payment for the three years that we have had the home on-time. Our employment status has changed and my husband is the only one working. Our home value is less than the balance we have. We have good credit. Is there a loan program that can help us reduce our payment/rate? Our rate is currently at 11%. Are there any programs for minorities? Lastly, our mortgage is with HFC and they are dissolving but there mother company is HSBC. I called them re: the President’s Home Affordability Plan that was announced on 3/2/09. Per the website, I should qualify, but HFC said that they did not have any info on this yet and I would have to wait but it looks like I would not qualify. That does not seem right.
I hope this makes sense.
I would greatly appreciate some real help.
we purchased the house for 143,900 now the house is worth 135,000 and our loan balance is 151,000.

ARMAND