No-Income Loans on Primary Residence

What Are No-Income Loans on Primary Residences?

No-income loans allow you to take out a loan for a primary residence without having an income or without showing taxable income on your tax returns. Normally, you need to disclose your income when taking a home loan. However, some people, for various reasons may not have sufficient documentation to prove their ability to pay back a loan.

For instance, you may have lost your primary mode of income due to the pandemic. Suppose you are relying on your savings outside of your bank account. Lenders may turn you down without bank statements showing you can repay your mortgage. Other documents they could ask for include pay stubs, tax returns, and W2s.

With a no-income loan, you are essentially applying for a loan while assuring the lender that you can repay your mortgage. You may know these loans as stated loans because of how you would simply state that you can repay your loan on a primary residence without having many other requirements.

How Do No-Income Loans Work?

No-income loans generally work the same way as other loans, except normally, your proof of repaying these loans involve paystubs. However, no-income loans allow those without a salary to get the financial assistance they need.

This type of loan only require a minimum credit score, equity and down payment, and verified assets. These details serve as alternate proof that you can pay back the loan with interest.

Overall, no-income loans are straightforward.  You can get this loan without worrying about your employment status. All you must consider is collateral to guarantee your repayment.

Collateral usually involves liquid assets, such as the following:

• Cash: Money that you might have saved up before losing your primary mode of income.
• Cash Equivalents: Includes treasury bills and commercial papers.
• Property: Things you can sell for cash immediately.

As an additional note, with a cash-out refinance, the cash-out can be used as an asset. 

Be sure to consider your situation whether a no-income loan is your best option. Remember that these loans are designed for those without an income source such as a full-time job. They can help you get the funding for your primary residence. 

Simply consult with our real estate experts at RoBUS Mortgage about your situation. We are ready to assess whether you meet the minimum requirements to get one of our no-income loans.

How to Qualify for No-Income Loans

Also known as no-ratio loans, you can get a no-income loan as long as you have alternative methods of proving that you can repay your mortgage. In other words, you must establish that you are financially stable enough to take out a loan on a primary residence. Usually, a lender offering these home loans will assess your credit history to determine whether you can pay it back.

At RoBUS Mortgage, we only require a minimum of 680 credit for you to qualify for a no income loan. We will also need 25% equity interest and down payment as proof of your repayment capabilities. When it comes to purchases or rate/term refinances, cash out refinances allow you to use cash out as reserves. We will confirm your assets that have six months of PITI payments on the property.

What to Expect When Getting a No-Income Loan on a Primary Residence

Without documentation to prove your ability to repay your loan, there are a few consequences to consider when getting a no-income loan. Since lenders will be taking a risk on you, you can expect the following:

• High-Interest Rates: Lenders can place interest rates that are higher than usual mortgages to ensure that you can repay what you borrow. Having no documentation is a risk on the lender’s part, so they charge these prices for assurance.
• Large Down Payments: Expect to pay at least a 25% down payment on a loan that requires no documents. Just like high-interest rates, this large down payment requirement serves as assurance on the lender’s part.

●  High Credit Score: Be sure to have a credit score that goes beyond the qualifications expected of anyone getting regular mortgage loans. Expect to show at least 680 on your credit score to qualify for a no-income loan.

Why Get No-Income Loans on Primary Residences From RoBUS Mortgage?

RoBUS Mortgage is licensed to provide no-income loans on primary residences and related services in the following states:

• AZ
• CA
• CO
• FL
• GA
• ID
• MT
• OR
• TX
• UT
• VA
• WA
• WY

We are confident that you have access to the mortgage you need with our services. Whether you need to cash-out refinances or purchase a loan, you can do so without any income with RoBUS Mortgage.

Our services also allow you to cash out on your refinances to cover the asset reserve requirements. Consult with our real estate experts to determine your options in getting a no-income loan on a primary residence. Get a quote today.