No Income Verification Mortgage Loan

What is JVM’s No Income Verification Mortgage Loan?

A no income verification mortgage is a non-QM home loan that doesn’t require pay stubs, W-2s, tax returns, or employment verification. Instead, it’s underwritten on your credit, a down payment of at least 20%, and the cash reserves you’ll have left after closing.

The program has fully amortized, interest-only, adjustable-rate, and fixed-rate options. With no income paperwork to collect, the application moves faster, which makes it a strong fit for self-employed borrowers and for borrowers without a job who have enough liquid assets for the down payment and reserves.

Why Choose A No Income Mortgage Over A Hard Money Loan?

Hard money loans come with very high rates and fees, and they focus almost entirely on the property. A no income verification mortgage costs far less than hard money and offers both fixed-rate and adjustable-rate options, which makes it a better fit for borrowers with significant equity (for a refinance) or liquid assets (for a purchase).

Core Benefits of JVM Lending’s No Income Verification Mortgage Loan

• Flexible Property Types: Single-family homes, condos, townhomes, PUDs and 2-4 unit properties are eligible.
• Less Paperwork, Faster Process: With no income or employment verification, there’s far less to document than on a conventional or FHA loan, and the loan application moves faster.
• An Alternative to Conventional and FHA Loans: If the requirements of conventional loans or FHA loans don’t fit your situation, this program looks at your credit, down payment, and reserves instead of your income.

Eligibility Requirements

• Down Payment: At least 20% of the purchase price. Borrowers with lower credit scores may need to put more down.
• Loan-to-Value (LTV): Up to 80% on purchases and rate-and-term refinances, and up to 70% on cash-out refinances.
• Reserves: Depending on your credit score and how you’ll use the property, reserve requirements range from 2 to 12 months of payments after closing.

How Does It Compare to Other No Income Mortgage Loans?

FHA loans, VA loans, and conventional loans all verify your employment and income and cap your debt-to-income ratio, which doesn’t work for every borrower. Other non-QM loans swap the tax return for a different kind of proof:

• A bank statement loan uses 12 to 24 months of deposits as your income.
• An asset depletion mortgage turns savings and investments into a monthly qualifying income.
• A DSCR loan qualifies an investment property on its rent.

A no income verification mortgage skips the income calculation entirely. Rates run higher than on a full-documentation loan, so if you can document income later, refinancing can lower your rate. Our no doc mortgage guide covers each of these programs in more depth.

Who Should Consider A No Income Loan Program?

This loan program is particularly beneficial for:

• Self-Employed Individuals: If write-offs shrink the income on your tax returns, this loan doesn’t look at them.
• Investors: With no maximum on properties owned or financed, and no calculation of expected rental value, this is an excellent option for real estate investors.
• High Net Worth Borrowers: If you have substantial assets but can’t verify cash flow with traditional income documents, you’re a great fit.
• Borrowers Without a Job: Because there’s no employment verification, you can qualify while unemployed if you have enough assets for the down payment and reserves. Our guide to getting a mortgage without a job covers the other routes too.

Understanding How Adjustable-Rate Mortgages (ARMs) Work with JVM Lending’s No Income Verification Mortgage Loan

Our no income verification mortgage comes with a 5/6 Adjustable-Rate Mortgage (ARM) as well as a fixed-rate option. If you’re new to the concept of ARMs, understanding how they work can help you make an informed decision.

What is a 5/6 ARM?

A 5/6 ARM is a type of mortgage where the interest rate remains fixed for the first five years (the “5” in 5/6) and then adjusts every six months (the “6” in 5/6) based on a specific index plus a margin. This means you’ll enjoy the stability of a fixed interest rate for the initial five years, after which the rate can change twice a year.

How Does It Apply to This Loan Program?

On this loan, the 5/6 ARM starts with a fixed interest rate. This rate remains constant for the first five years, providing you with predictable monthly payments during that period. After the initial five years, the interest rate will adjust every 6 months based on prevailing market conditions.

Why Choose an ARM for a No Income Verification Loan?

Here are some reasons why an ARM might be advantageous in this loan program:

• Lower Initial Rates: ARMs often start with lower rates than fixed-rate mortgages, making them attractive for borrowers who plan to refinance or sell before the rate adjusts.
• Flexibility: If you’re a real estate investor or someone who doesn’t plan to stay in the property long-term, an ARM can offer financial flexibility.
• Rate Caps: Many ARMs come with rate caps that limit how much the interest rate can increase, offering some level of protection against skyrocketing rates.

What to Consider?

While ARMs offer several benefits, they also come with risks:

• Rate Fluctuations: After the fixed-rate period, your interest rate and payments can increase, affecting your budget.
• Refinancing Risks: If you plan to refinance before the adjustable period kicks in, market conditions might not be favorable for a new loan at that time.
• Understanding the Terms: Make sure you understand the index, margin, and rate caps that will determine your future rates.

Before choosing a 5/6 ARM, take a close look at your financial situation, property goals, and tolerance for risk. If you’re unsure whether it’s the right fit, our Mortgage Analysts can walk you through the numbers.

FAQs

What is a No Income Verification Mortgage Loan?

A no income verification mortgage is a non-QM home loan that doesn’t require pay stubs, W-2s, tax returns, or employment verification. We still pull credit and verify the assets for your down payment and reserves. It’s designed for self-employed and asset-rich borrowers.

How does this loan differ from a Hard Money Loan?

Unlike hard money loans, which often come with much higher interest rates and fees, this loan program offers much lower interest rates and fees with only a slightly more stringent underwriting process. It’s a more affordable and convenient option for borrowers with substantial equity or assets for a down payment.

Is a credit report required?

While the loan does not require a perfect credit score, a credit report will still be pulled, and a good credit score is needed for the application process.

What types of properties are eligible?

Single-family homes, condos, townhomes, PUDs, and 2-4 unit properties are eligible, subject to the program’s property guidelines.

How do the reserve requirements work?

Reserves are the funds you have left after closing, measured in months of your full payment (principal, interest, taxes, insurance, and any HOA dues). On this loan they range from 2 to 12 months, depending on your credit score and how you’ll use the property. The money stays in your own accounts and isn’t paid to the lender.

How do I start the application process?

To begin the application process for a no income check mortgage, you can start by completing and submitting JVM Lending’s online loan application. After you submit your loan application, our team of experts will guide you through the loan process, answer any questions you might have, and help you understand your mortgage options.

If you have more questions or need further clarification, feel free to contact JVM Lending for personalized guidance on this unique no income verification mortgage.

How much down payment do no income verification loans require?

At least 20% of the purchase price, since the program tops out at 80% loan-to-value. Borrowers with lower credit scores may need to put more down. Plan for 2 to 12 months of reserves on top of the down payment and closing costs.

Can I refinance with a mortgage without income verification?

Yes. Rate-and-term refinances go up to 80% loan-to-value, and cash-out refinances go up to 70%, which means you’ll keep at least 30% equity after a cash-out. Credit and reserve requirements still apply.

Your Next Steps

A no income verification mortgage lets you buy or refinance without income paperwork, at a far lower cost than hard money. It works best when you have good credit, at least 20% to put down and reserves to spare after closing.

If you’re interested in exploring this loan program further, you can request a free consultation with one of our mortgage experts. They can guide you through the loan application process, help you understand your mortgage options, and find the best fit for your financial situation.

If you have more questions, call us at (855) 855-4491 or email hello@jvmlending.com.

*Rates and terms are subject to change without notice.