Are you an individual that owns a business? Do you work as an independent contractor or are you a tipped employee? These are all situations that can make getting a good mortgage difficult because proving your income can be very hard to do.
There is a way that you can get a mortgage without many difficulties, though. You can use what is called no documentation loans to get what you need. Here are the situations that are perfect for the no doc kind of loan.
If you are self employed, then you should know that this program began with you. You will probably be asked to use what is called a stated income mortgage program. This will allow you not to have to prove your income since that can be difficult for the self employed.
This should present on issues and getting the mortgage should be pretty easy. You will not have to gather together bank statements or any other proof of your income. Just write down a number and sign it saying that is what you make.
If you are one that works for someone else, but are considered an independent contractor, then you can also use the no documentation loans to your advantage. You probably get paid cash, which can make it difficult to prove what you truly make. This would be another great time to use the stated income program.
You will not have to prove your income or where you work with this program. It is very similar to being self employed, but not quite the same. This will allow you to refinance if you need to or buy a home if that is what you are attempting to do.
One more situation that the no doc loan is great for is tipped employees. These are usually bartenders and servers, but anybody that makes the majority of their money from tips qualifies. This person typically does not claim all their tips and this makes it hard to prove your real income.
The stated income program for mortgages can help out this kind of worker in addition. They will not have to prove anything. No employment verification or income verification. They just have to write down a number and sign it stating that they make that much each month.
No documentation loans should not scare you, and you should not feel like you are doing something wrong. The interest rate will be a little higher than a normal mortgage, but that is due to the lender taking a little more of a risk on you. These programs were designed for this use, though, so use them.