Nina Loans
Nina Loans
NINA loans are often used for homebuyers whose incomes are difficult to document, more often commission based or self employed people, whose incomes consist mostly of cash. A lot of small business owners also prefer NINA mortgages because their incomes are closely tied to their business and or commissions. When business owners apply for Full-Doc loans, banks require their business financial documents, such as 1120, 1120S, 1065, various docs, year-to-date Profit and Loss statements, business account statements, etc., in addition to their personal financial documents…stocks, bonds, real-estate investments. In stead of going through disclosing all of their business financial information, most business owners opt for the simplicity of NINA mortgage loan package.
NINA mortgages, No-Income No-Asset, don’t require loan applicants to disclose the amount of their salaries or their cash reserves. Banks still want to know about the homebuyers’ employment information. NINANE, which stands for No-Income No-Asset No-Employment, or other wise known as No-Doc mortgages, do not require even the disclosure of the homebuyers’ employment.
NINA loans require a high credit score. Generally the higher the loan to value will mean the higher the score needed to qualify.
A NINA loan is typically chosen by self employed borrowers that do not have seasoned funds and cannot prove their income on the books. Seasoned funds must have a traceable history of 60 days and cannot include cash or unsecured borrowed funds.
A Loan To Value ratio in which borrowers are allowed to borrow are usually much lower on a No Income, No Assets loan programs.
The line gets a bit grey between the no-ratio and NINA mortgages, and always is swayed by the credit score. In most cases, a lender will want to know what the NINA applicant does for his or hers profession, and for how long. Lenders feel most comfortable when a borrower has been in business for least two to five years.
The NINA loan approval is based on down payment, credit history, and property value. This program still requires “employment” documentation of your past 2 years, while others do not.
Nina mortgages also take less time to process do to the less paperwork being underwritten.
NINA stands for “No Income, No Assets”.
These types of loan programs allow a credit worthy borrower to access financing through no traditional documentation. There are a variety of programs available. Some programs even allow a borrower to finance 100% of the property value for a refinance or a purchase.