Other than having good credit, what are the requirements to obtain one, along with the pros and cons? What is the mininum credit score required? Thanks
2007-02-26 11:11:03 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Rand these loans are not for people with "bad credit". To my knowledge an above higher credit score is required.
2007-02-26 14:01:38 · update #1
They do exist, and you don't need proof of employment or income. The catches are; no bankruptcies, no forclosures in the past 7 years, no collections placed on your account in the past 2 years, and credit scores in the 680s.
2007-03-03 18:27:39 · answer #1 · answered by 1235 4 · 0⤊ 0⤋
I have done a no doc a couple of times. It is generally for self employed people or people who's income is otherwise difficult to verify. No worry though, you can still get a loan with modest credit scores through a broker (might have to try more than one if credit is really bad). The trade off is the interest, it will be higher on a no doc, maybe 1pt, maybe more depending on the market you're in. Just ask to do a no-doc, brokers do them all day long and have no problem accomodating you. They will ask for bank statements though, so keep this in mind when you are telling them how much you make a year.
2007-03-06 05:46:37 · answer #2 · answered by Jmeller 2 · 0⤊ 0⤋
i just read an article about loans in the wsj, the days of these no doc, no money down, bad credit loans are pretty much over with. There have been and will be too many defaults to make it worth it. The goverment agencies that do low cost loans in this sector are probably gonna be the last holdouts, they can lose money as fast as they can and will still be bailed out. As for pro's and cons, well if you have to go thru one of these they are good cause you can get the loan, bad cause the interest rate and fees will kill you, and if you are in that kind of financial shape in the first place you will probably default and lose the house anyway.
2007-02-26 11:48:29 · answer #3 · answered by rand a 5 · 0⤊ 0⤋
You don't need to have good credit for a Stated Loan.
The good thing about this loan is it is easier to obtain. The rates are generally one point higher than full doc loans but if you are self employed or low income, then this is for you. minimum fico is 580 to 600 depends on your lender. There aren't really any cons to this program. It's the loan officer or lender that you have to becareful of. A good lender or loan officer will taylor a loan that fits you and your goals. That's how I am with my clients.
2007-03-05 23:36:15 · answer #4 · answered by Lawrence D 1 · 0⤊ 0⤋
No doc mortgages are usually for self employed, with stated income. In Canada usually they require a minimum of 20% down. the credit score varies as to the lender, can be as low as 560.
http://albertamortgageguy.com
2007-03-06 06:27:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, no-doc loans don't require any proof of current income/employment.
Unless you want to pay a hideous interest rate, you should have credit in the excellent range - FICO at 750+
You will pay more than other loans, though, since you are a riskier prospect than others.
2007-02-26 11:15:20 · answer #6 · answered by John T 6 · 0⤊ 0⤋