NO-DOC
MORTGAGE LOAN

What is a NO-DOC Mortgage Loan?

Unlike conventional loans, a no documentation mortgage loan requires no income verification from the borrowers - instead, these mortgage programs are based on credit history, real estate investment experience, and liquid assets, which are then processed through underwriting.

The relationship between the investment home buyers and the mortgage lender, is based on the non documented loan agreement that the borrower can afford investment property home loan payments and will make them. 

Like a no income verification mortgage loan, a NO-DOC loan program has less regulation and higher rates than conventional loans. Although risky, the flexibility and quick approval process for the borrower makes it an easier decision for many real estate investors. 

If you’re looking to apply for a loan that’s non-verification of income or assets based, it’s heavily suggested to work with an experienced private money mortgage lender.

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Only Real Estate Investors with high credit scores (over 650) are eligible for a NO-DOC Mortgage Loan. Whether it's a commercial real estate soft money loan or a soft money rental loan, this type of loan product benefits borrowers who do not have the ability to go to the bank due to their documented income, closing timeline, and employment history. 

Unlike conventional investment property loans that max out at 70% LTV, a NO-DOC Soft Money Loan Program maxes at 85% LTV and with no PMI. This allows the borrower to put less money down on their purchase.

How can you Apply for a NO-DOC Mortgage Loan?

When a borrower is looking to qualify for a mortgage for their investment property, they normally are required to submit a proof of income, such as; pay stubs, employment letters, bank statements, and tax returns. As a non documented loan program is also a NON-QM (non-qualified mortgage) loan, the borrower is not required to provide any proof of income. 

Due to the structure of this type of loan program and other NON-QM loans, they are only available through direct private money and non-qualified mortgage lenders.

The application process for this specific loan is no different than other private money mortgage programs or asset based loans. Unlike conventional loans with extensive documentation, this program has less underwriting, making this a faster process for prospective investors.

To get started, enter your loan scenario into our Mortgage Loan Calculator or submit your application to enter the pre-approval process. A loan officer from our sales team will reach out within 24 hours to review your loan application, investment property scenario, and begin acquiring the necessary information - such as your credit history, investment experience, and review of your assets.

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Get started on all the documents and requirements for your NO-DOC Loan, visit our Document Library​ to discover what you need throughout the loan process.

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Submit your loan scenario today and you'll hear back from one of our top loan officers within 24 hours!

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If you are looking to apply for a no documentation (NO-DOC) or a no-income-verification, or a stated income loan, here is a brief overview of tips to consider when applying:

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• You are someone who is self-employed, or has an irregular income, or you have money in the bank but your income fluctuates, then a no documentation mortgage could be the right choice for you as a borrower. 

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• If you are a prospective borrower or an experienced real estate investor - when working with a mortgage lender on a NO-DOC loan program, the approval process will be based entirely on the value of the property. 

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• When you’re purchasing a home or commercial building as an investment property, then your projected rental income can help you get approved without any other income or asset documentation.

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• If you are a real estate investor, then a NO-DOC is ideally suited for you as it requires no proof of income or tax documentation. 

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• The approval process is fast, making it well suited to the quick turn-around associated with real estate investing. 

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• This type of mortgage loan program can be used on the following investment property types, including, Single-family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, and Warehouses. 

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There are Fixed rate and Adjustable-rate options. Foreign Nationals are also eligible, making it ideal for real estate investors based outside of the United States as well. 

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 The Benefits of NO-DOC Mortgage Loan Programs

There are many benefits to working with asset based and no income verification mortgage programs. Here are the pros and cons of working with NO-DOC Mortgage Loan Programs:

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The Pros of Working with No Documentation Mortgage Programs

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• They provide more accessibility for real estate investors looking to own investment properties. For example: If you previously were not able to obtain a conventional loan due to strict documentation guidelines, a private money loan program might help you qualify for a NO-DOC mortgage loan.

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• Like other asset based loan programs, no documentation loans have a fast application process - where conventional mortgages usually have an underwriting process that lasts over the course of several weeks, these type of loan programs closing within 21-35 days.

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The Cons of Working with NO-DOC Mortgage Programs

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• It’s difficult to apply for these types of loan programs due their rare nature - there are not many lenders that offer no documentation, no income verification, or stated income loans. Therefore, It might be hard finding a lender, like Stratton Equities - that offers NO-DOC loans.