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Full Doc Loan |
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To Full Doc or not to Full Doc, that is the?By: Frank Watkins Full Doc, Stated, NINA. What do these types of loans mean and how do they affect my purchasing power? The simple answer is "greatly". Depending on how you are employed and how you do your taxes all have a bearing on what program would be best for you. Simply put, a "Full Doc" program requires the most paper work and the smallest down payment (Typically 5%). You will have to supply Bank statements and tax returns with (W-2s and or 1099s). Asset, employment and deposit verification are also items included with this type of loan. If you shelter your income and shield it from the IRS then you might not have the W-2s or 1099s to fully qualify for a conventional, FHA or VA loan. The "Stated Income Loan" was designed for people in this situation. This program gives you the chance to obtain a loan for a home without providing tax returns or pay stubs. However assets are generally still verified. Depending on your credit, you may still obtain a home with only 5% down. Provided that you have the reserve requirements as specified by the loan program. But with these loans the interest rate does increase (this increase is dependent on your credit scoring). A NINA simple means, No Income, No Asset. With this type, you need not disclose employment or asset information. But these loans have an even higher interest rate than the stated programs due to the fact that the lender's risk is greater since he is not able to verify anything. The main driving force on this type of program is a SOLID credit history. And if your credit history is good enough, you can buy a home with as little as 5-10% down. Rest assured, that there is a loan for just about everyone out there! Please give me a call for more information!! Frank Watkins |
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