If you have excellent credit and are seeking a lower LTV loan amount, this loan may not cost you any more than a full doc loan. With this program, you will still likely be required to verify that you do have a source of income. One way of supplying this information is through a Verification of Employment, by which investment property cash out refinance seasoning employer verifies that you are an employee of their company.
NINA loans are sometimes referred to as no doc loans, however “true no doc” loans are sometimes further defined as NI NA NE for No Income, No Assets, No Employment documentation. With a stated loan you are required to show proof of a job, your job history, and you need to list your true income on your loan application. The reason why people do stated income loans is for reduced income documentation. With a stated income loan you are not required to show W2’s, pay-stubs, tax returns, bank statements, etc to show proof of your income. Only borrowers with strong credit will qualify for this type of loan. Also, expect to pay a higher interest rate and be limited to a lower LTV or loan to value. The NINA loan program is perfect for borrowers who are self-employed who may not be able to document their income for any reason.
For the average homeowner who is on a fixed income or are wage earners who may qualify based on their credit, be careful not to buy too much house than you can actually afford. No Income No Asset loans can be a great alternative to stated income loans. NINA Mortgage Refinance – NINA stands for No Income, No Assets and means that a borrower can qualify for a loan without present documentation of either income or assets. If you are recently self-employed and are unable to get a traditional mortgage loan because you don’t have a 2 year history of being self-employed you may qualify for a NINA loan and not have to state where you work, what you do, how much you make, or how much money you have “stashed away” anywhere.
Sometimes NINA is reffered to as a NO DOC type of loan. However some NINA programs will still verify employment. A true NO DOC loan will not verify employment. NINA Loan – A NINA Loan is a where the borrower does not disclose income or assets on the application. These loans are generally a higher risk to the lender. Since they are higher risk loans they demand a higher fico score and the rates can be higher. NINA stands for “No Income, No Assets”.