• Kings of Capital

What are the Perks of No Income Verification Loans for Borrowers?

If you do a quick google search of ‘loans,’ you’ll find thousands of results of people claiming that this loan or another is better. You’ll probably find three general categories: hard loans, no income verification loans, and traditional loans.


Traditional loans are those that are offered by financial institutions like banks. They tend to have many guidelines and lots of paperwork. If you don’t want to deal with all of that, then no income verification loans may be the right choice for you. No income verification loans have numerous perks and benefits for borrows/real estate investors.


Firstly, no income verification loans are offered only by private money lenders like Kings of Capital. It is self-explanatory but private money lenders who offer these types of loans do not verify income. This means that you can keep your pay stubs, bank statements, tax statements regarding your income or assets, and any other cash flow information at home.


This is a great choice for borrowers who are business owners or self-employed. These are the people who may not have the most stable cash flow and that wouldn’t matter for no income verification loans. Since these other things don’t matter for no income verification loans, there are three critical qualifying factors: credit history and good credit score (higher than 650), liquid assets, and past real estate investment experience. If you have all three of these things, you should apply for this loan. It’s just that simple but this isn’t the only perk of no income verification loans.


Secondly, another perk of these loans is they tend to have much lower interest rates and fees when you compare them to hard money loans. This is also thanks to the fact that these loans have a higher maximum LTV than more traditional loans. Traditional loans tend to have a lower maximum LTV of 70%, while no income verification loans can go up to 85%. This is a huge benefit for borrowers. The lender takes on more of the risk with higher LTVs and the borrowers can put down a lower down payment. The higher maximum LTV paired with the lower interest rates make this home loan option a great deal for those of you who own a business or are self-employed.


It is also a great option if you don’t have a huge amount of savings. You may not be able to afford a lower LTV because you can’t put down such a large down payment upfront. While traditional financial institutions like banks don’t offer such a higher LTV and would demand much larger down payments, a private money lender would be much more willing to be more flexible with a no income verification loan.


Here’s another benefit you probably didn’t realize existed. Since a no income verification loan requires borrowers to have past investment experience, you may be coming to get a loan for a variety of reasons but it won’t be your first property.


If it isn’t your first property, you probably know what a good deal is. In fact, you’re probably on the lookout for great investment properties all the time. And when you see one, one of the most important things is how quickly they want to close the deal on the property. If you see that there is a three-week deadline, you probably close it and think it’s a lost cause because you don’t have the money in your bank and would need a wallet. However, with a no income verification loan, you don’t have to move on. When you find a good deal with a tight deadline you can get the loan in time. With no income verification lending, there is a quick turnaround process. It can take as little as 2-3 weeks to be approved for this loan. You can get that great deal thanks to a loan that only a private money lender like Kings of Capital can offer.


A no-income verification loan is perfect for those of you who don’t qualify for hard money or traditional loans because it can save you a lot of money. It also is a lot less of a hassle without all the extra paperwork and extra stress. The reality is that if you have been denied every qualified mortgage, then you need a private money lender with plenty of non-qualified mortgage experience. Remember, all you need to provide is information about your credit history (a credit score of above 650), liquid assets, and past real estate investment experience.


Once you have that, a private money lender like Kings of Capital can provide you with the best options when so many of us have been denied all other loan opportunities at traditional financial institutions.


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