No INCOME Mortgages Are Back...But They're Not What You Think
The Kwak Brothers • 8 days ago
What This Video Is About
The video introduces no income mortgages, which have returned with stricter requirements than the 'ninja loans' that caused the 2008 housing bubble. These new mortgage programs do not require income documentation but demand other financial documentation to qualify.
Major Ideas Discussed
- The programs require higher liquidity, larger asset verification, and above-average credit with at least a 640 FICO score, distinguishing them from the 2008 'ninja loans'.
- They are designed for self-employed individuals or those with unique income sources that don't fit traditional molds.
- The mortgages are 30-year fixed-rate with a minimum loan amount of $100,000 and a maximum of $2.5 million, requiring a 20% down payment and 6-9 months of PITI reserves.
- Eligible reserves include stocks, bonds, mutual funds, 401k, retirement accounts, and cryptocurrency converted to cash.
- The program has state restrictions, including unavailability in certain states like Washington DC, Maine, and Maryland.
- Eligible property types include primary residences, one to four unit residential properties, and certain condos, but exclude investment properties and manufactured homes.
- A minimum FICO score of 640 and two trade lines are required, with case-by-case consideration for borrowers with strong credit depth.
What to Watch Next
Viewers can consult with licensed mortgage advisors to determine if a no ratio or alternative documentation mortgage is suitable for their situation, with a link to book a call provided in the video description.