No Income Verification Real Estate Investment Loans
A No-Doc or Low-doc loan (No/Low Documentation Loan) refers to loans that do not require borrowers to provide documentation of their personal income to lenders or do not require much personal documentation and is asset based. It is a financial product commonly offered by a commercial mortgage lender to investors who do not qualify for normal loan products because of fluctuating or hard-to-verify incomes, such as the self-employed, or to serve customers with strong credit but lack of income. Applicants for low doc commercial loans are often required to provide a substantial down payment, i.e. a larger deposit either through equity in security or personal savings.
Self-employed, unemployed, seasonal workers, and new immigrants generally struggle to meet strict requirements to qualify for loans. A loan with few to no/low documentation or credit history requirements is easier to qualify for, but generally carries a significantly higher interest rate.
This is the only way that you can borrow without recent tax returns or financial statements.
You may have already found that choosing the right low doc real estate investment loan can be difficult as lenders have different requirements and interest rates.
Is there anything I should watch out for?
Higher interest rates: This will mainly depend on the lender and what sorts of verification or supporting documentation that you are able to provide. Some of our lenders offer the same low rates as they do for full documentation, real estate investment loans.
Larger deposit: 25% – 30% of the purchase price is normally required although some lenders require less.
- Typical Properties
- Bulk Distribution / Industrial
- Apartments (5 units or more)
- Anchored and Unachored Retail
- Grocer Anchored Retail
- Office (CBD & Suburban)
- Cross-Collateralized Portfolios
- Rental Income Residential Investments
- Program and Terms
- $500,000 -25 million
- 3 to 8 years
- 75% Max LTV
- 1-3% Commitment Fee
- First Mortgage or other customary collateral