As of 1/25/2010, we have temporarily suspended our No-Doc Mortgage loan program. We are working with lenders, in hope of bringing this program back shortly. Meanwhile, please visit one of our sponsors below for No-Income-Check loans.
Stated-Income Stated-Assets Mortgage (SISA) is a type of mortgage program in which
the loan applicant is not required to furnish income documents or proof of sufficient assets.
The home buyer's income and the assets used for the down payment, closing costs and
reserves are disclosed on the loan application, but no supporting documents are required.
History of employment and position held will still be verified by the lender bank.
SISA mortgages are mostly used by home buyers who are self-employed, small business
owners whose businesses are mostly cash base such as street vendors, people with jobs that
receive cash tips such as hotel bellhops, doormen and waiters, and those that preferred not
to produce income documents. Borrowers with cash incomes often have enough income to
afford a mortgage, but their provable incomes are not sufficient to qualify for the loan amount
they need. Self-employed and commission base loan applicants often have incomes closely
tied to their businesses and have complicated income structure, which makes proving their
incomes challenging and difficult. To prove a loan borrower is self-employed, banks will often
require a letter from the business accountant stating so.
Because assets are not verified, Stated Income Stated Assets mortgage applicants do not
need to show a deposit trail for the funds used for down payments, settlement costs, and
after-settlement reserves. Loan borrowers who receive a large portion of the income in cash
will not have to explain the large amount of cash on hand. Stated Income Stated Assets
mortgage is often the preferred and only choice for this type of home buyers.
Banks often require that SISA loan applicants to have near perfect credit history. Applicants
need to have 700+ credit scores, and at least 4 open trade lines (active accounts) with no
adverse ratings such as "lates", collections, charge-offs, foreclosure, etc.
Compare with Full Documentation mortgages, Stated-Income Stated-Assets loans may
have higher interest rates, given that lending banks and secondary market investors carry
higher default risks with Stated Income Stated Asset loans.
