Alternative Financing
If you have good credit but write too much of your income off as expenses on your taxes there are alternative financing programs for you. Stated income programs are for people who cannot qualify at their reportable income level. For example, if you own your own business your accountant writes off as much of your income as possible in order to minimize your income tax liability. This, however, also minimizes the amount of income that can be counted towards qualifying you for a mortgage. Commissioned borrowers are treated the same way. The lenders realize what is happening and have developed different types of no income verification programs: stated income, no ratio, and no doc. For stated income you do just that, state an income. The lender does not verify the income but does look at the reasonableness of the income for the profession. For no ratio, no income at all is stated, and for no doc not even employment is listed. Depending upon your credit score and your loan to value you will pay a slightly higher interest rate for a stated income than a fully documented loan. No ratio is even riskier for the lender so the rate is higher than the stated, and no doc higher still.
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