No Income, No Ratio, and Stated Income Loans

Buying a home is a major decision for anyone no matter how you choose to fund the purchase, but if you are looking outside of the traditional mortgage options, you might run into even more questions.  We at JZ Mortgage Services, Inc want to make sure you have all the information you need to move forward with the process. Whether you are self employed or simply don’t want to go the route of conventional financing, we would like to discuss your options with you today.

No Income Loans

You may think it’s impossible to qualify for loan without an income, but it’s actually possible in some situations. In most situations if you are not working, you probably wouldn’t consider taking on more debt, but it might make sense for you depending on your circumstances. Keep in mind taking out a loan without an income does it have its drawbacks. You will typically need to provide proof that you are receiving some form of income even if it’s not from working at a regular job. These types of loans typically have higher interest rates and may ask you to find a cosigner to vouch for you just in case you don’t end up making the payments on time.

No Ratio Loans

These loans can be used when you want to buy a home but have a very particular financial situation. No ration loans don’t require the borrower to have a specific debt to income ratio which is typical in conventional financing. People that qualify for this type of loan should have good credit and assets that can prove they are financially capable to handle making the payments on the loan once approved.

Stated Income Loans

For those who are self-employed, this would probably be the first option they would consider when purchasing a home. You will still need to provide documentation of your financial situation, but you may not need the detailed paperwork that was necessary years ago. For example, if you work more than one job, you could only need to provide documentation of the job that you’ll be using to qualify.

How Do I Qualify?

The first step of the process is the same as with any other type of mortgage which is applying for the loan. You may want to shop around and discuss your options with different lenders to make sure you are working with a company that best suits your personal situation. Once you’ve found a lender you want to work with, you’ll want to get all your financial information together to start the process. You’ll have to provide documentation of your income, debts and credit history in order to get approved.

The main thing a lender wants to confirm is that you are financially stable enough to pay back the loan as well as that the down payment is coming from a reliable source. You may be asked to provide additional information regarding the source of your down payment in certain situations.

Things To Consider

The loans listed above are very different from traditional financing so you will most likely be working with a private lender. The good thing about working with a private lender is they will be able to discuss your situation in way more detail than a bigger bank who might just look at your application and deny you based on numbers alone.

Reach Out Today

As a private lender, we can discuss your financial situation with you as individual and review parameters that matter to us more than they would a traditional lender. The ease and flexibility that we are allowed due to us being a private lender, can pay off very well for you so don’t hesitate to reach out to discuss your potential approval with an expert at JZ Mortgage Services, Inc today!