Loan not requiring documentation of income. Designed for borrowers that can show assets but cannot verify enough income to qualify for conforming loans.
This program is essentially a variation of the No Income Verification (NIV) loan. Unlike the " stated income" variation of the NIV program, however, the applicant indicates no income amount in the application; the lender's underwriter ignores all income qualification questions. Such programs place the greatest underwriting weight on the applicant's credit grade and lowered LTV. For more information, see the "No Income Verification" or "No Documentation Programs" articles in the "Loan Programs" section.
A mortgage product that does not consider ratios in the qualification. This type of mortgage is offered at a higher interest rate because of the risk to the lender or investor.
Good loans for those who can verify employment for two years in the same industry (ideally the same or similar job), but do not want to verify income. They require employment verification and asset verification for purchases, but rarely require verification of assets for refinances.