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I have a quick quesdtion of the lenders. Do no doc loans exist today?

by jeremypied2 from Wilmington, North Carolina. Jul 15th 2015 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

NO, although some folks still advertise these types of loans, in reality, it's a bait and switch tactic.. The Financial Reform Bill HR4173 signed into law by President Obama on 8/1/10 outlaws stated income and no doc loans.Section 1411 reads: "'(4) INCOME VERIFICATION.-A creditor making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability, including expected income or assets, by reviewing the consumer's Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer's income or assets..." The new law does allow exceptions to this Stated Income rule for HUD, VA, USDA and Rural Housing Service loans, however the exceptions usually refer to streamline refinancing of these loans.Lenders are now required to verify that you have income and the ability to repay. For conventional, FHA, VA, and USDA, this means tax returns, w2's and or 1099's and pay stubs. However for hard money, soft money, and portfolio loans where the mortgage is not insured, the lender can choose their own form of verification. One of the more common accepted forms are 24 months bank statements.. there are several hard money lenders who will use your past 2 years statements, but you have to verify, explain and source every single deposit over the past 2 years.. it's a real pain, but there are lenders doing these.. understand that because these loans are much more risky, the loan pricing (rates and loan costs) are extremely high.. much higher than any conforming loan product.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 15th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

Nope, sorry. There are some "limited" verification options around but if you can't document it there is no way to make the loan.

Jul 16th 2015
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