Low-Documentation / No-Credit / Bad-Credit Home Mortgage Loans
Mortgage Wizards, Inc. can help you get on with your life
You might be denied a conventional home mortgage loan because you might have a low credit score or, like most college students, have not established your credit history yet.
Sometimes, believe it or not, you can even be classified as a "bad credit risk" for just simply carrying no debt because you pay all of your credit card charges promptly on time.
Alternatively, perhaps you make a lot of money but mostly in cash (like waiters and waitresses) or make so much money that to gather all the financial documentation that a regular bank requires would cost you more money that you'd be saving by getting a regular loan with "conventional" interest rate.
In both cases you would need a low- or no-doc home mortgage loan with which we can help.
Such loans usually come with one-half to three points higher interest rates but it may be worth your state of mind and getting that refinance or house for which you've dreamed about. The Truth in Lending Act (TILA) sets the limits to and regulates the interest rates on such non-conventional loans.
Banks treat the following cases as "bad credit risks" and reject any conventional mortgage loans to such customers:
- If the value of the loan to the house you are trying to refinance or purchase (the loan to value ratio, LTV) is high.
- If you have declared bankruptcy within the last 2 years.
- You have little or no documented source of income, or even if you do, you also have a lot of payments and debts and thus not much "disposable income."
- You have no assets that can be cashed easily.
- A credit (FICO) score of 610 or lower.
- If you have not paid your bills on time within the last 2 years and it shows in your credit report.
- If your debt-to-income (DTI) ratio is over 40%.
So let's look at the alternative mortgage loans we can arrange for you here at the Mortgage Wizards.
Stated-Income Loans
One kind of low-document home mortgage loan is called the "stated-income loan" because we take your stated income for the last 12 months as a base even without a copy of your W-2 forms or an official statement of your income from your place of employment which verifies your income.
Stated Income-Proof of Assets Loan
This type of mortgage loan, a "Stated Income-Stated Assets" loan or SISA, works for those people who have a fair amount saved in their 401K, stock account or savings account, yet have difficulty proving all of their annual income. Here, you state your income and provide us with evidence of your assets and you will qualify for a very competitive loan and interest rate.
No-Ratio Loans
In this type of mortgage loan, the lender does not calculate your debt-to-income (DTI) ratio and instead goes with your list of assets. You are not even asked for your W-2 forms or an official statement from your place of employment for income verification. People who go through dramatic life changes like a death in the family or divorce usually apply for this kind of low-doc mortgage loan.
No Documentation (No-Doc) Loans
Also known as "no income no asset" or NINA loans, this kind of mortgage payment requires almost no financial documentation but also costs the most – about some 3 points extra for the interest rate.
Most customers who can put down a sizable down payment (up to 25%) can get a no-doc loan by only providing such personal information as name and last name, address of legal residence, social security number, place of work, etc.
No matter what your credit situation is or documentation requirements are we can find a way to meet your home mortgage needs.
Call us TODAY at (877) 310-FUND for a free and strictly confidential consultation to determine how we can help you the best.
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