2006-06-24 09:39:00 · 3 answers · asked by herronryan 2 in Business & Finance ➔ Renting & Real Estate
A 'No Qualifying' loan is one that does not look at your income or employment for qualifications. The lender simply looks at your credit and the amount of money you are putting down.
If your credit score is good, the rates are not actually that bad. Yes, they are a little higher than a loan where you provide pay stubs, W-2's and all that stuff, but they are still in a good range.
Now if your credit is WAY BAD and you use a private lender, you will need to put 30% + down and your rate will be over 12%. These are the loans that get the bad name.
A 'no qualifying' loan from a respectable mortgage company is not that bad if you fit the criteria. There are still qualifying guidelines (credt- down payment), but you don't need a job or verifiable income.
I have done plenty of these loans for past clients.
Take care,
Greg S.
2006-06-24 11:48:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It usually means getting a loan and paying higher interest rates. Also that you have insufficient funds to pay for a regular mortgage.
2006-06-24 09:43:48 · answer #2 · answered by johnb693 7 · 0⤊ 0⤋
super high interest rate, huge prepayment/refi penalties/unnecessary costs attached to the loan.....sub prime loans...They are pretty ugly, be legal. I'd steer clear
2006-06-24 09:44:14 · answer #3 · answered by Paula M 5 · 0⤊ 0⤋