Is there Still a No Doc Mortgage in 2022?
Looking for a loan program that does not require income for all occupancy types? The main qualifying factor for this loan program is being able to show enough liquid assets. Lenders often refer to the no income document mortgage as:
- An asset conversion loans.
- Asset only loan.
- No document home loan.
- No income verification mortgage.
- Stated income loan.
- Low doc mortgages.
These types of loans are similar when it comes to the concept, but all have different underwriting criteria. Depending on your case scenario, a Mortgage Loan Originator can go over your options.
Mortgage Purchase with No Income Verification
Typically, the asset conversion loans require at least 100 to 150 percent of the base loan amount, down payment, loan costs, and reserves required to qualify. The down payment starts at 10% without income documentation.
Though some lenders may say they still have a no doc mortgage in 2022, lenders are still required to prove ability to repay and credit is always a determining factor.
The minimum credit score is 600 but comes with loan-to-value restrictions.
Mortgage Refinance with No Income Verification
There are traditional rate and term refinance loans that do not require an appraisal or income, but the existing loan must be FHA or VA. The non-conforming conventional mortgage refinance with no income verification allows you to cash out or do a rate and term refinance – this depends on eligible assets.
Eligible Assets
Some examples of qualified assets may include, but not be limited to:
- Bonds.
- Cash value of life insurance.
- Checking and savings accounts.
- Money market accounts.
- Stocks.
- Retirement accounts.
Asset conversion/asset depletion can be used in conjunction with traditional income, but the calculation for income will vary depending on the type of asset and the loan program.
Qualification for No Income Verification Mortgage
For the mortgage purchase with no income verification:
- As low as 10% down payment.
- 600 minimum score but comes with loan-to-value restrictions.
- Can go up to $3,500,000 loan amount but comes with loan-to-value restrictions.
For the mortgage refinance with no income verification:
- As high is 90% loan-to-value on a rate and term refinance.
- Up to 80% loan-to-value on a cash out refinance.
- Minimum credit score is 600 but comes with loan-to-value restrictions.
- Can go up to $3,500,000 loan amount but comes with loan-to-value restrictions.
Other No Income Verification Mortgages
- Debt-service coverage ratio and no ratio mortgages for investment properties for purchasing a property or refinancing without personal income.
- VA interest rate reduction refinance loan (VA IRRRL) allows veterans to refinance an existing VA loan.
- FHA streamline refinances allow borrowers with an FHA loan to refinance their loan without an appraisal or income documentation.
It is important to explore all options, but there is still a no doc mortgage in 2022 – not requiring standard income documentation for purchases and refinances for all occupancy types.
