No Income Verification - No Doc Mortgage Loan And Stated/Self Employed Loans
 Even with all the newer lending guidelines, there are still New Jersey No Income Verification (NO DOC) and NJ Stated loan programs for self employed borrowers.
The New Jersey Stated Income program is designed for self-employed borrowers with excellent credit and an established business (two-year minimum). This program eliminates the need to verify income. But the borrower’s income must make sense for the type of business they are in. The stated income program is still considered a “higher risk” product and it is strongly advised that these loans be processed and underwritten with a common sense approach and a careful eye.
Borrower Requirements:
- Self-employed borrowers are defined as individuals with a minimum of 25% interest in a business.
- Copy of business license and/or letter from CPA required. Letter must indicate length of time business has been in operation (minimum 2 years), how long CPA has been retained by the borrower and percent of ownership.
- Borrower’s application must state income.
- Gift funds are not permitted unless over and above minimum down-payment requirement of 30%.
- Use of business funds for closing and reserves is acceptable, if borrower is a 100% owner of the business and accountant provides written statement that personal use of such funds will have no adverse effect on the business.
- Assets must be verified and be consistent with stated income
Although there is NOT a credit score minimum, the borrower must have a clean credit profile.
You must be able to put down 30% to be considered for this type of loan. The loan limits depend on the strength of the complete file.
Typically rates for this type of program are currently still below 6% which is great considering there are only about 2 lenders in New Jersey that will even entertain these types of stated loans.
New Jersey No Income Verified Asset ( NO DOC) loans
These type loan products are pretty much non-existent currently in the mortgage industry. However we do have only one Investor that will entertain these type New Jersey No Doc, New Jersey No income Verification loans.
The New Jersey NIVA Program is designed for borrowers with excellent credit. This program eliminates the need to verify or state income. Listed below are the requirements of the program. The NJ NIVA Program is considered a “higher risk” product and it is strongly advised that these loans be processed and underwritten with a common sense approach and a careful eye.
Borrower Requirements:
- Borrower must have a satisfactory and significant credit history.
- Source of Income/Employment must be stated
- Assets must be fully verified and contribute to the overall strength of the file
To be even considered for this type of product, you must be able to put down a minimum of 40% down. The higher the loan amount, the more you would need to put down.
Even with this type of product, rates are currently in the 6’s depending on the type of term you choose.
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