no documention for the loan means what exactly? does it basically mean there are no signatures from the loaner & loanee and possibly no record of what the loan is? In that case the loan is just passed by word-of-mouth??
no doc means they don't look at your docs in order to qualify you for the loan. They will only look at the deal and won't care about your fico score and all that other stuff. They are giving you money based on the LTV. You don't need to present any documents to get the money. And yes, you do sign on the dotted line.
Right! "No Doc" means that you do not need to provide any documentation in order to qualify for a loan, as nebulousd and tinman1755 stated earlier. The interest rates and downpayment will be much higher than a normal full doc loan, but that's the price you pay since the lender is taking a bigger risk on a no doc loan. With a "true" no doc loan, the lender should not pull your credit and you should not need to provide any documents (i.e., W-2, paystubs, bank statements, etc.).
With a "no ratio" loan, the lender is not looking at the debt-to-income ratio in order to qualify for the loan, but you usually still provide documentation (i.e., W-2, pay stubs, bank statements, etc.). Debt-to-income ratio is determined by...
Total Debt you pay per month
-----------------------------------------= DTI Ratio
Total Gross Monthly Income
I hope this helps clarify any confusions you have about the different loan programs.
No doc loans are credit score driven, You do have to have a certain credit score to get a no doc loan, but there are a few true no doc loans / Which means you can have N/A for all three credit scores.
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A No-Doc ABSOLUTELY is score driven, and to qualify for one you'll need at least a 680 fico or better to get one. If a bank is going give you loan without qualifying you for debt ratios, not verify you have a job or assets, they're gonna want to see that you at least have a history of paying your bills.
tinman's right they are FICO driven At least everyone I've dealt with. I use to be a loan officer. And I never seen any lender give you money unless they knew that you were going to pay it back. Yes it's true that if the deal is good enough on the LTV side of things, thats great but I never found a Conforming or Noncomforming lender that wanted to own property, thats not what their business is. A hard money lender on the other hand you can probably work out that kinda deal. If you know of any lenders that will do that based on just the deal. Please share.
I am part of a program that will do no credit checks or debt/ratio's. They will utilize an investors good credit for you to buy a home. The home will be deeded to a trust and the end user will be assigned
all the rights of ownership. Anybody that is a motivated buyer with bad credit can pm me for more details. Mike in San Jose
There are loans for investors at 75% ltv or better with a score of 590 or higher, and owner occupied at 90% with a 600 or above. I have programs for stated to 520 middle score. You really need to talk to someone that has been in the business and has done a lot of sub-prime b-c lending, because that is what you are describing in my terms.
LORI See my profile for further info
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NO DOC MEANS YOU SHOW NO DOCUMENTATION FOR A LOAN
NO RATIO MEANS THE BANK LEAVES THE DEBT RATIO PART OF THE FORM BLANK= NO RATIO CAN BE CALCULATED
LORI
sry to be stupid....but..
no documention for the loan means what exactly? does it basically mean there are no signatures from the loaner & loanee and possibly no record of what the loan is? In that case the loan is just passed by word-of-mouth??
thanks =)
-J
no doc means they don't look at your docs in order to qualify you for the loan. They will only look at the deal and won't care about your fico score and all that other stuff. They are giving you money based on the LTV. You don't need to present any documents to get the money. And yes, you do sign on the dotted line.
ok thanks. that make more sense to me now.
so no doc means they didn't (or don't have records) of checking buyers credit, assets, etc, right?
Right! "No Doc" means that you do not need to provide any documentation in order to qualify for a loan, as nebulousd and tinman1755 stated earlier. The interest rates and downpayment will be much higher than a normal full doc loan, but that's the price you pay since the lender is taking a bigger risk on a no doc loan. With a "true" no doc loan, the lender should not pull your credit and you should not need to provide any documents (i.e., W-2, paystubs, bank statements, etc.).
With a "no ratio" loan, the lender is not looking at the debt-to-income ratio in order to qualify for the loan, but you usually still provide documentation (i.e., W-2, pay stubs, bank statements, etc.). Debt-to-income ratio is determined by...
Total Debt you pay per month
-----------------------------------------= DTI Ratio
Total Gross Monthly Income
I hope this helps clarify any confusions you have about the different loan programs.
Tanya
yes, thank you much =)
No doc loans are credit score driven, You do have to have a certain credit score to get a no doc loan, but there are a few true no doc loans / Which means you can have N/A for all three credit scores.
[addsig]
That's exactly right Tinman....
A No-Doc ABSOLUTELY is score driven, and to qualify for one you'll need at least a 680 fico or better to get one. If a bank is going give you loan without qualifying you for debt ratios, not verify you have a job or assets, they're gonna want to see that you at least have a history of paying your bills.
tinman's right they are FICO driven At least everyone I've dealt with. I use to be a loan officer. And I never seen any lender give you money unless they knew that you were going to pay it back. Yes it's true that if the deal is good enough on the LTV side of things, thats great but I never found a Conforming or Noncomforming lender that wanted to own property, thats not what their business is. A hard money lender on the other hand you can probably work out that kinda deal. If you know of any lenders that will do that based on just the deal. Please share.
I am part of a program that will do no credit checks or debt/ratio's. They will utilize an investors good credit for you to buy a home. The home will be deeded to a trust and the end user will be assigned
all the rights of ownership. Anybody that is a motivated buyer with bad credit can pm me for more details. Mike in San Jose
There are loans for investors at 75% ltv or better with a score of 590 or higher, and owner occupied at 90% with a 600 or above. I have programs for stated to 520 middle score. You really need to talk to someone that has been in the business and has done a lot of sub-prime b-c lending, because that is what you are describing in my terms.
LORI See my profile for further info
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