Are no doc loans legal in va?

They are illegal everywhere... The Financial Reform Bill HR4173 signed into law by President Obama on 8/1/10 outlaws stated income and no doc loans.Section 1411 reads: ''(4) INCOME VERIFICATION.--A creditor making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability, including expected income or assets, by reviewing the consumer's Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer's income or assets..." The new law does allow exceptions to this rule for HUD, VA, USDA and Rural Housing Service loans, however the exceptions usually refer to streamline refinancing of these loans. For all conforming financing, they will require w2's, 1099's, personal and business tax returns etc.. For private money lenders, they just have to verify your ability to pay, so they could use just a bank statement showing regular deposits, and they have complied with the law.. but expect large down payments, and high rates and costs if you plan on using a Private Money Lender.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

no doc loans went away about 2007...

no doc loans went away approx 2006 to 2007