If you’re looking to invest in a new or rental property but afraid you won’t qualify or may not want to show proof of income or tax returns, a No-Doc or Low-Doc loan is right for you. With QK Mortgage we provide the right alternatives to obtain loans taking into account any obstacles you might face.
What is a No-doc or Low-doc Loan?
This is a loan based on assets, not income. This means you do not have to provide your personal income to receive a loan. This can be for people who are self-employed or have great credit but low or no income. These will generally have higher interest rates.
What to watch out for?
Higher interest rates will typically come with the cost of not having proof of income, although you can use the income the property will receive as part of your income. Take into account your debt-to-income ratio, how much money is coming in on the property, how much money are you losing?
Types of Low-Income Loans
Asset-based mortgage:
This is for investors who want to obtain a loan without income verification. This loan lets you use your assets over your income. This will not require a tax return or proof of income; this is for self-employed investors who are looking to buy a rental property.
Bank Statement Loans
This allows you to verify your income using bank statements, not tax returns. This is beneficial for business owners and self-employed individuals who have strong bank deposits but show tax deductions that disqualify them from qualifying.
Barriers for entry for real estate investors
Take into account how much rent the property is going to generate and whether you are going through foreclosure, bankruptcy, or a short sale.
Are tax returns required?
No tax returns required – use the lease agreement as part of your income.
The steps to take
Figure out the income the property will generate – call QK Mortgage at (866) 690-7463 to figure out the right low-income loan for you.