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When securing a mortgage, traditional lenders often look for standard income proof, like W-2s and pay stubs. But what if you don’t fit the traditional mold? Are there no-income verification mortgages available? The answer is more nuanced than a simple yes or no. Let’s explore options for no-income verification mortgages in 2023. 

What Is a No-Income Verification Mortgage?

For borrowers with unconventional sources of income, a no-income verification mortgage, sometimes known as a no-doc mortgage, presents a unique solution. Unlike traditional loans, these don’t mandate standard income documents. However, there’s still a need to demonstrate a stable financial footing to ensure consistent mortgage payments.

How Does a No-Income Mortgage Work?

Rather than traditional proofs like pay stubs or tax returns, lenders like Malve Capital consider other financial indicators, including bank statements, investment account balances, or even the projected rental income from a property.

Types of No-Income Verification Loans

There are several types of no-income verification loans:

  • Stated Income, Verified Assets (SIVA) – Designed mainly for self-employed and affluent individuals, stated income loans focus on bank statements to ascertain consistent income.
  • No Income, Verified Assets (NIVA) – Lenders focus exclusively on the borrower’s assets; these loans are best suited for retirees with sizable assets but limited income. 
  • Stated Income, Stated Assets (SISA) – These loans require virtually no documentation and are typically exclusive to real estate investors with a proven track record of buying, selling, or flipping property. 
  • No Income, No Assets (NINA) – These loans focus on the rental potential of a property, making them well-suited for investment properties.
  • No Income, No Job, No Assets (NINJA) – These loans hinge solely on the applicant’s stated financial profile.

When is a No-Income Verification Mortgage Right for You?

A no-income verification mortgage might be your solution if standard income proofs pose a hurdle due to:

  • Complex tax structures – If you have multiple income streams spread out over different tax returns, verifying your income may be challenging.
  • Inconsistent earnings – If your earnings fluctuate, common for small business owners, salespeople, seasonal, and hospitality workers, standard mortgages may prove elusive. No-income verification mortgages are more attuned to such financial patterns.
  • Substantial assets without regular income – If you have significant assets, you may qualify for a mortgage without the need to validate steady income. 

Qualifying for a No-Income Verification Mortgage

To obtain a no-income, no-doc mortgage, take the following steps:

  • Boost your credit – A good credit score increases the likelihood of qualifying for a no-income verification loan.
  • Amass a sizable down payment – Prepare to pay at least 20% to 30% upfront.
  • Compile required documentation – While traditional income proofs might be off the table, expect to furnish bank or investment statements.

Armed with the necessary documents, you can initiate your application, but be ready to answer any lender queries regarding your financial situation.

The Bottom Line

Obtaining a no-income verification mortgage is still possible but challenging. While investors still find doors open, homebuyers might face a steeper climb. Either way, turn to Malve Capital for tailored mortgage solutions that suit your unique circumstances.