Looking to Buy a house but can’t prove income?
A few years ago, your loan officer would have steered you toward a “no doc” or “low doc” loan where you would have to provide limited to no information about your income. But those loans are pretty much dead. Or are they?
Joe Kelly, president of ArcLoan.com, a national mortgage firm, says that no doc loans may be available from “portfolio lenders,” such as credit unions or community banks.
A Portfolio Lender is a company that not only originates mortgage loans, but also holds a portfolio of their loans instead of selling them off in the secondary market.
Portfolio Lender requirements for a no doc loan:
- Very high credit scores (720 and up)
- No Derogatory marks on your Credit Report
- Low LTV (loan-to-value)