No Income Verification Home Equity Loan

A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for it. This type of loan is great for homeowners who need a home equity loan but have a hard to document income. The majority of borrowers with hard to document income are self-employed or commission based employees. Consumers who fall under these categories may have high income but may also have a lot of business related deductions that they write off on their taxes.

You may have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the home equity loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes by contrast to the net income. In order to qualify for a no income verification home equity loan you will, in the most cases, need good credit and a high credit score. You can expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you need to document your income to qualify.

Also, even though a no income verification home equity loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though as some lenders offer a program called NINA which stands for "no income no assets". This means you do not have to document you income or provide proof of any assets. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available for you.

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