These types of loans help you to keep your financial information to yourself without having to share it all with your lending institution. Since this type of mortgage loan allows you to bypass some of the paperwork that is typically associated with real estate loans, these loans typically result in higher interest rates and fees.
Who Needs No Verification Loans?
Some of the reasons you may choose to get this type of a loan include:
- Self-employed business owners
- You receive payments each month from clients with poor credit or with a low income
- You do not claim all of your income from cash
- You are divorced and your ex-spouse had poor credit
- Non-U.S. citizen and receive non-documented payments
- You are unemployed and do not meet the income requirements for a traditional loan
- Your debt to income ratio is poor