No Doc Loans benefit those that are high income earners or those that are self-employed. For the most part, they are not able to qualify for a traditional loan due to their irregular income patterns. They do not have a W-2 income and need other methodologies to show they have the needed income to carry the loan. This category of No Doc Loans also applies to high-income earners that take lots of tax deduction where the net income is low and not able to satisfy the requirements of a Traditional Mortgage.
No Doc Loan refers to No Tax Returns being required to prove qualifying income such as that in a Traditional Mortgage. This brings us to Non-Traditional Mortgages today most are called NON-QM loans or NO DOC LOANS. this group of mortgages makes up a large volume of loans that are closed these day. Loan Programs that are in this category are Asset Based on NON-QM Mortgagee are obtained by real estate investors, self-employed individuals, and those who have limited income but have exceptionally high-value assets such as rental properties, stocks & bonds, IRA, 401K. Value Funding Inc will loan based on the value of the property and not on the tax returns they provide.
Bank Statement Loan. Where the deposits to the bank statement will count as the qualifying income. No Tax Returns are required. This is ideal for those that are self-employed Debt Service Ratio – better known as DSCR Loans. The rental income is equal to or greater than the monthly mortgage payment including the interest, property taxes, and the homeowner insurance. This asset-based loan works well with real estate investors.