A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.
The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.
In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.
Source : EzineArticles
Tuesday, June 5, 2007
A Loan That Can Keep Up To Your Demands
Your home gives you the privilege of raising a huge loan amount on it. If you pledge your home with a lender you can get not only a big loan amount but the rate of interest will also be very low compared to other forms of borrowing money.
A secured loan can be repaid in monthly instalments that may extend up to 25 years. Your loan’s EMI (equated monthly instalment) involves a mix of interest, as well as the principal amount. In initial stages of a loan, since the amount outstanding is more, the interest constitutes a major portion of the EMI. As the loan recedes, the interest becomes less predominant and the principal portion increases in the EMI. You can accordingly decide whether you want to repay your loan earlier or not.
Secured loans provide you flexibility in repayment terms. You can choose a variable rate of interest, a fixed rate of interest or capped rate of interest. The variable rate of interest varies with the fluctuations in base rate of interest as decided by the Bank of England from time to time.
The monetary policy committee of the BoE decides the base rate according to the prevailing situations in the market. Fixed interest rate options against secured loans means that you are required to pay interest at pre-specified rate regardless of the changes in base rate. In case of capped interest rate, the interest rate cannot go beyond the cap provided but within that cap it remains variable.
Since secured loans are taken out by pledging your home, these loans are also known as homeowner loans. These loans offer you many advantages like low APRs, deferred repayments, repayment holidays, flexibility in repayment terms, etc. Many types of finance are available in the UK financial market but when it comes to borrowing big amounts, homeowner loans are largely relied upon by the borrowers.
The author is a business writer specializing in finance and credit products and has written authoritative articles about personal loans, homeowner loans. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist.
Source : EzineArticles.com
A secured loan can be repaid in monthly instalments that may extend up to 25 years. Your loan’s EMI (equated monthly instalment) involves a mix of interest, as well as the principal amount. In initial stages of a loan, since the amount outstanding is more, the interest constitutes a major portion of the EMI. As the loan recedes, the interest becomes less predominant and the principal portion increases in the EMI. You can accordingly decide whether you want to repay your loan earlier or not.
Secured loans provide you flexibility in repayment terms. You can choose a variable rate of interest, a fixed rate of interest or capped rate of interest. The variable rate of interest varies with the fluctuations in base rate of interest as decided by the Bank of England from time to time.
The monetary policy committee of the BoE decides the base rate according to the prevailing situations in the market. Fixed interest rate options against secured loans means that you are required to pay interest at pre-specified rate regardless of the changes in base rate. In case of capped interest rate, the interest rate cannot go beyond the cap provided but within that cap it remains variable.
Since secured loans are taken out by pledging your home, these loans are also known as homeowner loans. These loans offer you many advantages like low APRs, deferred repayments, repayment holidays, flexibility in repayment terms, etc. Many types of finance are available in the UK financial market but when it comes to borrowing big amounts, homeowner loans are largely relied upon by the borrowers.
The author is a business writer specializing in finance and credit products and has written authoritative articles about personal loans, homeowner loans. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist.
Source : EzineArticles.com
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