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Self Employed Loans - Use Bank Statements, Go Stated, or Go Traditional

Thursday, January 30, 2014 - Article by: nationwidelenderforyou - AFG - Message

If you are self-employed, work as a freelancer or own a small business, you may not have the traditional pay stubs or tax return(s) required to secure a traditional mortgage. The inability to be able to provide pay stubs and or tax returns to an underwriter, can cause you to be turned down for a traditional mortgage. Despite, what you might have heard there are still alternative financing options for a home loan..No-Documentation MortgagesSome borrowers are not traditionally employed and or are paid in non-traditional ways, and therefore the lack certain documentation. In other situations, because of how the borrower gets paid or is employed they "write off" significant expenses on their tax returns. Since the underwriter will review the net and not the gross, that borrower's tax return is considered "depreciated".In such cases, special "no-documentation" or "no doc" loans are a possible option.A no doc loan does not require pay stubs and tax returns. The loans base the eligibility on credit ratings, liquid assets and assets that can be used as collateral in case of default. If a borrower shows a long history of paying their debts on time, some lenders will make the loan without the borrower having to provide income documentation and or copies of tax returns. Such mortgages are secured by both the applicant's assets and the property. It is important to note, that a significant down payment is required for a no doc loan purchase. In most cases we require at least 30% down.

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