Here’s Why No Doc Loans are the Best for Income Properties in Maryland
If you’re an experienced real estate investor, you know how important it is to have easy access to funding solutions. Unfortunately, taking out a mortgage loan from a traditional bank may be too complicated, which makes it an impractical option if you want to take advantage of fantastic investing deals as they arise.
No doc investment loans are perfect if you want to invest in income properties in Maryland. This type of loan is easier to qualify for and doesn’t require tax returns or other financial documentation. Read on if you want to know more about how a no doc loan works.
What is a No Doc Loan?
A no-doc loan, also known as no income verification mortgage, are mortgage products that don’t require borrowers to provide proof of income or tax records. Instead, the amount the borrower is approved for is based on their credit history, real estate investment experience, and liquid assets, which are processed through underwriting afterward.
Contact our loan officers for inquiries if you want to apply for a no-doc loan in Silver Spring, MD, in Montgomery County.
Advantages of No-Doc Loans
No-doc mortgages come with tremendous advantages. They’re not only easy to qualify for, but there are also long-term benefits of getting one.
Here are the reasons why no income verification loans for real estate investors are a perfect match:
No doc-loans come with a low, fixed interest rate. This is perfect if you want to hold your investment property for a long time, as it guarantees healthy cash flow.
They don’t require tax returns & other financial documentation. This gives real estate investors an easier time qualifying for a mortgage.
The title is flexible. Your investment property can be purchased under a corporation, limited liability company, legal entity, or your individual name.
You can refinance immediately after three months. You can take advantage of better mortgage rates if the market plunges or use the current appraised value and tap any home equity you may need.
Depending on the lender, you could get a 30- or 40-year loan term. The major benefit of the longer terms is the ability to stretch out the loan balance, which makes your monthly mortgage payments cheaper.
Most no-doc loan lenders don’t require you to have a lease agreement with a tenant before approving the mortgage. Which means you can purchase the property and just find a tenant afterward.
Borrowers enjoy a more streamlined mortgage process when applying for a no-doc loan. Plus, it’s common for this type of loan to go through underwriting and close at a much faster rate than conventional and government-backed loans.
Is a No-Doc Mortgage Right for You?
A no-doc loan is a fantastic option for experienced real estate investors. They’re ideally suited for you as it requires no proof of income or asset documentation.
Work with The Mortgage Option of Silver Spring, MD, if you’re ready to invest in income properties in Maryland.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.