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Easy-Qualifier Loans - Q & A
| Q: |
What are
no-doc loans? |
| A: |
"No-doc"
loans are mortgages for which lenders require very little loan
documentation as long as the borrower puts down a sizable down payment,
generally 25 percent or more.
These mortgages are common among self-employed people who say they
earn a certain amount of money but whose tax returns show that their
earnings are much lower.
Resources:
* "How to Shop for a Mortgage," Mortgage Bankers Association
of America, 1125 15th St., N.W., Washington, DC 20005; call (202)
861-6500.
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| Q: |
Can someone
who is unemployed get a loan? |
| A: |
Generally,
lenders will not make loans to unemployed persons because someone
without an income would seemingly have no way of making monthly mortgage
payments.
However, there are home loans for which lenders require very little
loan documentation as long as the borrower puts down a sizable down
payment, generally 25 percent or more. These "no-doc" loans
are common among self-employed people who say they earn a certain amount
of money but whose income tax returns show that their earnings are much
lower.
Borrowers should check directly with lenders when seeking a no-doc
loan. If specific lenders do not offer them, ask for a referral.
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Copyright 1999 Inman News Features
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