 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
©
2002 Ruth E. Campbell. |
|
|
Frequently Asked Questions Mortgages
- Q & A Q: What are no-doc loans?
A: "No-doc" loans are mortgages for which
lenders require very little loan documentation as long as the
borrower puts down a sizable down payment, generally 25 percent
or more. These mortgages are common among self-employed people who say
they earn a certain amount of money but whose tax returns show
that their earnings are much lower. Resources:* "How to Shop for a Mortgage," Mortgage
Bankers Association of America, 1125 15th St., N.W., Washington,
DC 20005; call (202) 861-6500. Q: Can someone who is unemployed get a loan?
A: Generally, lenders will not make loans to unemployed
persons because someone without an income would seemingly have
no way of making monthly mortgage payments. However, there are home loans for which lenders require very
little loan documentation as long as the borrower puts down
a sizable down payment, generally 25 percent or more. These
"no-doc" loans are common among self-employed people
who say they earn a certain amount of money but whose income
tax returns show that their earnings are much lower. Borrowers should check directly with lenders when seeking a
no-doc loan. If specific lenders do not offer them, ask for
a referral. |