A “No Doc Equity Loan” or “No Doc HELOC Loan” is a unique and advantageous home refinancing product that allows individuals, who do not wish to provide the traditional full stack of supporting documentation that accompanies the home loan process, to their lenders.
Consumers like paperless home equity loans and HELOC loans because they streamline the loan process and make the refinancing process much less stressful. The second part of an undocumented home equity loan product is that some lenders also offer a feature called
no income verification or reported income. This means that you indicate your income (say $3,000 per month) but the lender does not verify the information with pay stubs, W-2 forms, etc.
Lenders vary in the loan products they offer. Some lenders only serve people with excellent or good credit scores and also only offer traditional home loans. Other lenders specialize in working with people with poor credit scores and offer a wide variety of loan programs.
If you’re looking for a no-documentation, no-income-verification refinance loan, you’ll need to find the “right” lender. Start your research by getting at least three or four home loan quotes, free of charge. You should not have to pay for this service.
Once you find the lender of your choice, compare the loan terms, including the amount the lender can offer (for example, $250,000), interest rates, type of loan (ARM, Fixed, etc.), and fees. points. You will have to pay a slightly higher interest rate for a loan without documentation than for a loan with full documentation.