In cases where you have at least 20% available for a down payment, some lenders waive their income verification requirements. That means you don’t need to supply pay stubs or tax returns. However, you do need to document a two-year employment history and if you have been self-employed you will most likley need to provide a letter from your CPA. These loans require that you have very good credit and at least 6 months of new housing payments in the bank when the loan closes. Gift funds are generally disallowed, but with some exceptions.
In return for waiving the income documentation requirements, lenders charge a slightly higher rate on these products. If you don’t have excellent credit, the rate will be even higher.
"No Asset Verification" Loan If your down payment is a large gift that you can’t document or from out of the country, please ask me about this type of loan.
"No Document" Loan If you cannot document your employment history or source of down payment you may qualify for a "no document" loan. Many "no doc" loans do not even ask what you do for a living! The interest rate on these loans is typically 1% to 1.5% higher than for full documentation loans. You normally need at least 25% down and excellent credit for this type of loan.
