No Income Verification No Doc / Stated Income Mortgage In Washington
If you are a real estate investor in Washington and looking for a mortgage loan, you sure know how much time you will spend dealing with red tape if you go with the conventional lending procedure. So naturally, you may have started seeking alternatives to avoid those piles of documents and get the funding in the easiest way possible.
The good news is that you just have found one because here in Washington, at LBC Mortgage, we offer No Doc Mortgages as well as No Income Verification Home Loans.
So, let’s find out what are Stated Income Loans/No Income Verification Loans, how to qualify for one; are No-doc mortgages safe nowadays, and what do you need to qualify for them in Washington state?
No Income Verification Loan in Washington State
A Washington stated income loan, also known as a no doc no income verification loan, is one of the most popular lending programs offered to real estate investors, allowing them to get financing without having to qualify depending on their debt-to-income ratio.
A stated income loan is way simpler to approve. In addition, it allows self-employed borrowers who would likely not qualify for a traditional mortgage to fulfill their investing goals.
Keep in mind that these lending programs are exclusively available for investment homes in Washington State and not for primary residences.
That’s true, you can read some criticism about those types of loans here and there, but truth to be told, stated income loans may be the greatest mortgage option for a specific type of borrower.
Benefits of No Income Verification Loans In Washington
- This type of loan does not have the same underwriting standards and delays as a loan with confirmed income.
- A loan with no income verification is often approved and funded in a relatively short amount of time.
- This type of loan has a fixed interest rate for the first three, five, seven, or nine years. Following that, the interest rate fluctuates, and there is no penalty for refinancing into a new loan.
- Borrowers who cannot show regular income can qualify for a loan without the red tape and stress of a long underwriting process and the headaches of income verification.
No Doc Mortgage
The Non-Doc program is the easiest way to get a loan and one of our unique programs which don’t require documentation or income verification upon approval.
LBC Mortgage clients call it one of the most outstanding mortgage programs available on the mortgage market for a reason. Why so? Because you don’t need to provide any documents. At LBC Mortgage, we don’t require any proof of income as well.
Going with the Non-Doc program will save you a lot of time and power, which, as a real estate investor, you’d typically use for filling and collecting all of those required documents. Instead, you should simply provide a declaration that indicates that you can repay the loan.
Unlike traditional ones, these loans may be a good alternative for real estate investors who have unstable or undocumented income or cannot satisfy full documentation loan programs.
Are Current No-Doc Loans the Same as 2008 No-Doc Loans?
Suppose we check the history of No-Doc loans. In that case, we’ll see that before the 2008 housing crisis, this program was a popular alternative since lenders didn’t have to verify the borrower’s ability to repay the mortgage. But, of course, we all know the result – many people lost their jobs and had loans they could not repay.
And answering the question ‘Are 2022 No-Doc loans the same as 2008 No-Doc loans?’ – no, they are different. Since its inception, those types of loans have developed significantly.
Nowadays, in Washington state, all mortgage lenders are required by federal law to check borrowers’ income and/or assets to ensure they are able to repay. So, considering information above – that type of loan has more consumer protection than ever, giving you peace of mind as you secure financing for your next investment property.
Pros and Cons of Washington No Doc Mortgage
Let’s talk real here – a No-Doc mortgage exists for a reason. Perhaps, as a real estate investor, you cannot quickly show your earnings or just do not want to give a pile of documents.
There are situations where a No-Doc loan would be the best choice, and there are situations where it would be the best to skip it for a conventional loan. So, let’s talk about this.
Pros of No Doc Mortgage:
- They make it easier to buy an investment property. If you were previously unable to get a conventional loan because of strict documentation requirements, a No-Doc loan might help you qualify.
- They are faster to apply for. The underwriting procedure for a regular mortgage often takes several weeks. But, because there is less to verify, a no-doc loan might bring you to the closing table much faster.
Cons of No Doc Mortgage:
- These kinds of loans are rare. Yes, it may not be easy to find a lender who provides no-doc or low-doc mortgages. But no worries about that, you’re already at the right place.
- They are followed by less favorable loan terms. That’s true that No-Doc loan has slightly higher mortgage rates than traditional loans. It depends on the size of your down payment, credit score, assets, and how much information you are willing to provide about your employment.
- Higher credit score and down payment requirements. Minimum credit score requirements for no-doc loans are around 700. They may also request a down payment of 30% (But here at LBC Mortgage, we require min. 20% of the down payment, and your credit score should be min. 640)
But still, they do offer the same benefit as regular mortgage loans by allowing people to borrow the amounts needed to purchase the house.
What do you need to qualify?
To qualify for a non-documentation mortgage program, you will be asked to:
- put a minimum 20% down payment
- show three months’ reserves (we want to see that you have money for a minimum of 3 months to pay your mortgage after closing).
- show that your credit score is a minimum of 640
If you got the money to purchase a property as a gift or want to use an income from your Airbnb for the down payment, you will qualify for this program.
Ready To Get a Quote?
If your income situation is tricky and you’re having difficulty getting banks to act quickly on your application, it’s worth getting to know the lenders at LBC Mortgage.
We work with an expansive network that understands that traditional mortgages are becoming less and less common in today’s world. So we invite you to reach out to us and learn more about our process and our unrivaled determination to help you get financed easily!
If you have any questions about Washington No Doc No Income Verification Mortgages & Stated Income Loans in Washington State – don’t hesitate to contact us. Our experienced Washington mortgage broker we’ll be more than happy to explain the process to you and help with every step of the way.