No income/no assets (NINA) home loan is simply a type of low documentation mortgage plan where the mortgage lender does not have to verify that the borrower possesses any assets or incomes as a part of their financial data. This is because the property, as well as the value of the property are assumed to be “essentially risk-free.”
Even though this type of mortgage may seem attractive, it can make for a poor financial situation in the future when you need to apply for a mortgage at an early stage, for example for employment or education purposes. When applying for a mortgage with a no asset/no income (NINA) mortgage, lenders are concerned that they won’t be able to recoup their investment on your behalf in the event of you defaulting on the mortgage. That’s why they require you to furnish a convincing and detailed income and asset declaration. Even if you’re a good and responsible borrower who has an excellent credit rating, lenders will look at your income and asset declarations as a piece of the puzzle to determine whether you’re a high-risk borrower.
If you have bad credit mortgages, you need to get ahead of your lenders before they even get around to looking at your income declaration and assets declarations. By presenting an NINA home loan to them, you’ll be able to get the best terms possible on the mortgage, and you’ll also be able to obtain a lower interest rate. You’ll find that the NINA home loans are often available to borrowers who have poor credit histories because of the mortgage industry’s concern about making losses. But even if your credit rating is good, you can still avail yourself of the NINA mortgage plan by showing that you have a steady source of income, or a business that will generate cash flow. You could also qualify if you own a business or have a small retail outlet that would generate income when it is operational.
When you apply for a NINA home mortgage, the lender will verify the details of your finances. They’ll also ask to see copies of your bank statements, recent pay stubs, and any receipts or expense reports that you’re capable of producing. They will request to see the amount of money that you earn from your regular source of employment, or that you spend each month on food, gasoline, entertainment expenses, and other expenses that don’t appear on your income declaration forms. The lender will also want to see proof of all of the payments that you make on time each month, such as bank statements, pay slips, bank checks and pay stubs.
This information will be used by your NINA mortgage lender as the basis of your financial assessment of your income and assets. The NINA mortgage lender will then be able to calculate how much equity you have in your home, the value of your property, and your monthly mortgage principal balance.
Although the NINA mortgage lender will use all the information that they gather to calculate the value of your property, you should not be alarmed if the value of your property is significantly less than what you owe the lender. If you have a steady source of income, you can easily obtain a mortgage that includes an amount that is close to your original loan amount. It will be much easier to obtain a lower NINA mortgage if you can prove that you have adequate income compared to the value of the property. In other words, you can get a “substantial” mortgage by taking a smaller loan amount.
Your NINA mortgage lender will need to verify the value of your assets. They will check your current and former bank statements to verify if you have sufficient assets to support the mortgage, as well as your credit report to make sure that the amount of equity that you’ve built up is sufficient for your new mortgage. In the case of your assets being insufficient, your NINA mortgage lender may allow you to transfer some or all of them to your new lender. The amount of equity that you build up will be subtracted from your existing loan amount and you will end up with an equal amount of equity. In this case, you are considered an “equity negative,” because your existing loan amount is larger than the amount that you have built up with your NINA mortgage.
When your loan has finished paying for your NINA mortgage and your equity is higher than the amount of your existing loan amount, you can sell some or all of your assets to pay off your equity and close out your NINA mortgage. by using a mortgage closing company.