Home Equity

Get A Home Equity Line Of Credit Without Income Verification

A home equity loan that requires no income verification is a loan that does not have the requirement of you to document your income to receive the loan. A second mortgage is a good option for homeowners who need a home equity loan but cannot or would not like to document their income or have difficulty doing so.

Many borrowers with hard to document income are self employed or employees that are commission based. People who are under this category may have a high income but also have many deductions and write-offs on their taxes. This is positive in one aspect as it lowers the taxable income and therefore the amount of taxes owed. But when it comes to receiving a home loan it can hurt as the majority of lenders use the average of the last 2 years taxable net income to see the figure for the qualifying process for getting a loan.

There is a possibility of having a debt to income ratio problem if you have a high debt load and therefore this can keep you from being qualified for the loan. But if there is a no income verification home equity loan your gross income may be used for the purpose of qualifying as opposed to the net income.

To qualify for a no income verification home equity loan you will probably need to have good credit and a credit score that is on the high side. You should expect to pay a higher rate for this kind of loan as opposed to one where you can show your income. Even with the no income verification loan many lenders will require you to have a certain amount of dollar valued assets which must be verified. This is not true of all lenders though. Some lenders offer a program that is called NINA that stands for no income no assets. This means you do not have to document either your income or assets.

Guidelines and rates vary from lender to lender so shop around and make sure the loan which you get is right for you and is the best deal possible.