What would my interest rate be for a no-doc home loan?

Deal Score0

My credit score is 696 and the mortgage would be for about $ 165k. I have no verifiable income and no significant assets (hence no-doc).
It was through a builder’s auction…The builder’s retail is $ 295k but I don’t think it would appraise for that much. Maybe $ 225k.

6 Comments
  1. Reply
    Yanswersmonitorsarenazis
    April 30, 2011 at 12:48 am

    And the purchase price is what? $ 165K?

    I don’t know if there’s anyone left offering more than 90% financing on a no-doc basis anymore, but if you can get a loan, plan on rates in the 9-12% range. Seriously. These high loan-to-value no-doc loans have performed so poorly, the rates are sky-high right now.

  2. Reply
    jacksonphisig
    April 30, 2011 at 1:30 am

    it depends on you LTV….what’s your property worth?

    it could be 6.5-12%

  3. Reply
    bull_rooster_aardvark
    April 30, 2011 at 1:53 am

    Whatever you can work out with the bank. It there is tons of equity in the property you should be able to get a competitive rate. If there isn’t at least a pretty sizeable amount of equity you won’t even be able to get the loan, just go to the bank and ask them.

  4. Reply
    scott m
    April 30, 2011 at 1:54 am

    Could you possibly use bank statements to document income? That would increase the amount lenders would extend you in relation to the property value.

  5. Reply
    dzwreck
    April 30, 2011 at 2:36 am

    Every lender has their own guidelines and rate bumps for no doc loans. It also goes beyond just your credit score. You would be best off contacting a mortgage broker to get a fairly accurate quote.

    I am just going to “take a stab at it though” and assuming you have excellent credit, you can find someone to give you a no doc loan with a score under 700, and you are at or below 80% loan to value, you would probably be looking somewhere in the 7.5 to 8.0 percent range. See the link below in the sources for more information about no doc loans.

  6. Reply
    xls8000
    April 30, 2011 at 2:55 am

    What is your income then? You have to have something in order to be able to pay the mortgage monthly.

    Definitely try getting that information and getting quotes from different mortgage companies. Since the housing slow-down, companies aren’t making no-doc loans as much as they used to, so you may want to try getting your income together.

    Right now, if my bank (that I work for) would consider giving you a loan, you’d have to have accounts with us, more than 50% equity in the house, somewat verifiable income, and even then the rate would be high (9%+).

    Good luck!

  7. Reply
    Eduardo
    February 27, 2015 at 6:06 pm

    Subprime Loan Rates – Supbrime loan rates are generally 1% to 6%
    above conventional rates, determined by your
    credit rating different values, not enough communication, or simply just the stress involved when monetary issues arise, financial stability is foundational to a healthy
    relationship.

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