The No-Income Verification Home Equity Loan
- Jan Lindsey - MortgageLoan.com
Do you want to cash in on some of the built up equity in your home in order to make home improvements? It may be tough if you're self-employed or paid on commission, because you may have trouble satisfying a lender's demands for proof of income.
The solution may be a no-income verification home equity loan.
Home equity heaven
These loans can also be a blessing for people who've misplaced documents or need to move quickly to closing and don't have time to collect their paperwork and wait for it to be processed. Just think: no W-2 forms, no pay stubs, no tax returns, no IRS forms. Sound good?
Even though you'll not be required to prove your income, you will have to state it on the application. In some cases, you'll be asked to show that you have a certain level of assets or be asked to prove that you're employed, perhaps by showing a business license.
Beginning October 2, 2006, a new rule allows lenders to have access to the last four years of your federal tax returns for a modest fee. Therefore, they may choose to check up on the authenticity of your statements. As a result, you do need to be honest on these forms.
In most cases, a lender will require good credit and a high credit score for this kind of loan. Even then, the home equity loan rates charged are higher than those on a conventional mortgage to cover the lender's increased risk. As always, shop around for the best rates and loan terms.
If you think that you can't qualify for a home equity loan because you don't have a textbook income, think again. No-income verification loans can help overcome the problem of proving that you're worthy. .