New programs have hit the market recently that allow someone to buy a home without having to verify employment or income.Another form of this type of loan is known as a no-ratio loan. A job is listed on the loan application but some lenders will not verify the employment. A good situation for this is when the borrower is buying a high priced home and stating the amount of income that they make does not make sense for the job title that they carry or when they can not provide income documentation.
Mortgages without any type of income or employment verification will require a down payment. There are new lenders that will go as high as 95% with a NO DOC style loan.
Programs that do not verify your employment history or income are going to be heavily based on your credit history, and will carry higher interest rates compared to loans that require standard documentation.
People who have a lot of cash put away, tend to live off of the interest, and have no current job would be a possible candidate for a no doc. type loan. Also, a family where the husband has a great job but with terrible credit and the wife has no job but excellent credit, or vice versa, would be a prime borrower for a no documentation type loan. When entering into a no documentation loan please be keenly aware of how much money you are borrowing, what your total monthly mortgage payment will be with principal, interest, taxes, and insurance to make sure that you will be able to afford the mortgage payment. No debt to income ratios will be calculated on these types of loans and you can borrow as much as the bank will allow per their guidelines. Don't get stuck in a house with a monthly payment that you can not truly afford.
Mortgages that require no income, asset, and employment information are also known as No Documentation mortgages. The underwriting time is usually much shorter for No Income No Asset No Employment home loans (NINANE) because risk assessment base solely on credit profiles and the property used as collateral.
