How To Qualify for a No Doc Mortgage in Virginia

Living in Virginia is a dream come true for many. Aside from the rich history, there’s a low crime rate, a booming economy, and excellent healthcare. If you are planning to buy a home but have second thoughts because you’re self-employed, we have a solution for you!

A no-income verification mortgage may be your first step to home ownership. This type of loan requires less paperwork and is designed for the self-employed and those who can’t submit the requirements needed to get a traditional loan like W2s and tax returns.

If you don’t have regular income but have plenty of income and assets, you can close a loan faster with a no-doc mortgage.

Let’s look at how you can qualify for this type of loan in Virginia.

What is a no-doc mortgage? 

A no-doc mortgage is a loan product that doesn’t ask you for traditional income documentation like pay slips, tax returns, and W2s. With no-doc mortgage loans, you can get approved for a loan using other documents proving that you can pay for your loan.

If you are buying in a hot market and want to close faster, a quick response mortgage in Virginia is your best bet. 

What are the types of no-doc mortgages available in the market today?

There are various types of no-doc loans you can choose from. Here are the most common ones you’ll come across.

Bank Statement Mortgage

With a bank statement mortgage, you don’t have to show your tax returns or W2s to get approved for a loan. Bank statements are enough so that you can close quickly on the loan.

This is ideal when you need to move fast in making an offer for a home in a competitive market. Bank statement loans can close a few days after you apply and submit your statements.

You need 12 to 24 months' monthly average income based on your bank statements to qualify. If you receive deposits regularly, this type of loan is an ideal option for you.

For more information about a bank statement loan, you can ask a trusted mortgage broker in Woodbridge, Virginia.

Asset-Based Loans

Also known as asset depletion loans, this type of loan uses liquid assets as the basis for your loan. An income stream is generated from your assets by depleting them throughout the loan. 

This is ideal for those who have large balances on their deposit accounts.  

No Income No Asset Loans

This type of loan is available for real estate investors with rentals. The projected rental income serves as the basis for loan approval. You can get approval without income or asset documentation if the income meets or exceeds your monthly mortgage payments.

How to qualify for a no-doc mortgage loan?

No doc mortgage doesn’t mean you don’t need to submit anything to get a loan. Since no income is involved, verification of your earning history takes center stage. 

You need to prove that you can afford the mortgage payments by showing how financially sound your business is and submitting other items that can verify your claims. Here are the typical requirements needed for no doc mortgages:

• Good Credit. No-doc mortgages often require higher credit scores to qualify compared to traditional loans.

• Higher Down payment. The minimum down payment for no-doc mortgages usually starts at 20%.

• Higher Interest Rates. You may get charged higher interest rates due to the higher risk involved.

• Proof That You Can Repay The Loan.  You can submit proof that you can repay your loan by showing your bank statements, investment properties, or rental income.

If you’re interested in a no-doc mortgage, you can apply by getting in touch with a mortgage broker in Arlington, Virginia.

Are you ready to buy your new home with a no-doc mortgage?

With federal laws in place, no doc mortgages are safer today compared to the past. A no-doc mortgage is a good option if you are self-employed and want to buy a home. 

With fewer requirements needed for loan approval, no doc mortgages can close faster than their traditional loan counterparts.

To know how much you’ll pay monthly for your loan, you can use a Virginia mortgage calculator, a helpful tool you can find online.

Reach out to one of our loan experts for more information.

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.