Definitions for "No Income Verification Loan"
These types of loans are available to borrowers who, for one reason or another, do not wish to or are unable to verify their annual income. An example of such borrowers includes those who obtain revenue from sources they do not wish to divulge or those that receive all or a portion of their income in cash. While available from some lenders as fixed or adjustable rate loans, the interest rate and/or costs may be slightly higher than normal to reflect the higher degree of risk involved in loaning to borrowers whose incomes have not been verified. Such risk is often offset to some degree by borrowers who have significant verifiable assets or who are borrowing only a small percentage of a property's value.
This program is available on fixed rate loans where borrowers average bank deposits over the last three to six months are reviewed to match what is stated as income. Usually requires excellent credit and heavy reserves.
A loan that does not require income verification. These loans typically have higher rates in exchange for not verifying income.