No Doc – 2nd Mortgage

The No Doc mortgage has become a very popular loan in the finance market these days. While they are popular as first mortgage options, what about No Doc 2nd mortgage programs?No Doc – 2nd MortgageFor years, the mortgage industry was fairly static. You had fixed loans and adjustable rate mortgages. The term was the typical 30 years to pay back the loan, although shorter periods were occasionally offered. If you did not fit within in the guidelines and restrictions of these loan packages, you were out of luck.As our economy has changed, the mortgage market has also been forced to evolve. Why? Well, the days of people working for an employer for 30 years are simply gone. A vast majority of people now work for themselves, on commission and so on. In the mortgage world, this has caused problems. Why? It is difficult for lenders to analyze how much income the potential borrower is bringing in each month. They used to use tax returns, but the information is difficult to interpret given paper deduction such as depreciation that don’t really come out of the borrower’s pocket each month.The No Doc mortgage is a relatively new loan option designed to deal with this situation. The basic idea is to simplify the borrowing process by requiring the borrower to submit minimal or no documentation to support their loan application. The loans are based almost purely on your credit report, the property you want to buy and your stated income. They are often referred to as “liar loans,” since there is little written proof of anything.No Doc 2nd mortgages are an even newer option being made available to borrowers. A 2nd mortgage is simply a loan in addition to your original loan. It is often used as a way to pull cash out of the equity you have in the property. It can also be used to establish a home equity credit line that can be tapped as needed.The No Doc 2nd mortgage works the same way as a no doc first mortgage, at least in theory. Lenders have a habit of calling things “no doc” when they really are not. Specifically, lenders have a habit of wanting to see at least some documentation, particularly with second mortgages. This can include things like the current mortgage obligation on the original loan, pmi payments and even income statements and profit and loss for businesses owned by self-employed borrowers.If you are looking for a No Doc 2nd mortgage, it is in your best interest to shop lenders. The rates offered vary wildly, which means you can easily overpay. Contact us now to get the benefit of our nationwide lender resources to find the best No Doc 2nd mortgage for your situation.