NO INCOME VERIFICATION LOANS

aka: Stated Income Loans

NOTE: This product is not currently available!

  Many self-employed and tip earning workers have trouble verifying their actual income because the requirements for evidencing such income involve providing tax returns that simply do not accurately show their true wages.  Self-employed individuals often have numerous write-offs that make their income appear much smaller than their actual cash flow, and tip earnings simply do not keep accurate records.  Sometimes, income is disallowed for people that work multiple jobs because they have not been on the second job long enough to have such income counted.  There are many reasons as to why some people have difficulty in being able to show evidence of their actual income, even though such income may be quite substantial.  Therefore, the NIV, No Income Verification loan was developed.

    NIV loans are available at a slightly higher interest rate than could otherwise be obtained through a standard, full income disclosure loan.  Credit scores have to be decent, and usually some down payment is required, though not always.  However, when a borrower is faced with the choice to either pay a slightly higher interest rate or file new tax returns that accurately reflect their income, the higher rate is usually much more appealing.  All a borrower has to do on a NIV loan is state their income: no verification of the actual figure is made.  Stated amounts have to be reasonable for the line of work.  For instatnce, a self employed ice cream truck driver would raise an eyebrow if he stated a figure of $300,000 a year selling ice cream sandwiches at 75 cents a pop. 

    NIV loans are available in many forms and cover a wide range of borrowers, including investors.  The loan process is exactly the same as any other standard loan, except there is no verification of income for the NIV products.  So, if you know you have the income to make the payments and have decent credit, the NIV option might work great for you.