If you are self-employed, a new corporation or simply took a loss on your personal or business taxes then you may find it complex to get a commercial real estate loan approval, especially from usual financial lenders. At times it seems that conventional financial lenders have an implicit prejudice against the self-employed and new entities and so on.
But there is one solution to this, and it is called a no-income verification mortgage from an organization such as one stop loan company. With a conventional loan, the applicant must verify their income by getting verification of employment directly from the employer, as well as obtaining copies of the most recent pay stubs and W-2 forms.
Sometimes the applicant is also required to provide copies of the previous year’s tax returns. These are often called ‘stated income’ or ‘no doc’ loans because you simply write down the amount of income you make and the only documents required are a credit report and your loan application form.
For a person who is self-employed, it can be difficult to prove a steady income because there are not any pay stubs or W-2 forms that can be submitted. The no income verification personal loans don’t require any of these methods of income verification.
Instead, the applicant qualifies by stating their income on the loan application. With a high equity on a refinance, there may not even be the requirement for stating income.
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Yet, they can solve great problems for someone who has difficulty documenting the source of earnings. They may come with higher interest rates but they are financially viable for whom paychecks do not mean income.