No income verified 2nd mortgage loans are typically priced higher because of the inherent risk that comes with no income documentation. Self employed borrowers pose a bigger risk of defaulting on their loan, so the rate charged is higher in most cases.
Typically borrowers will need more equity in their home as well. 80% cltv is standard for stated income 2nd mortgages if the borrowers have good credit. In some cases 2nd mortgages are approved at 90 or 95% cltv for no income verified scenarios.
Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Typically, the borrower’s liquid assets are verified, and must meet a specified amount depending upon the loan program. The traditional requirement is 3- 6 months of stated income and two months of expected monthly housing expense.
We suggest no income verification loans for
self employed borrowers