No Doc home LoansNone Document House Loans
NINA, NINJA & No-Doc - Mortgage Linking
A no-doctoral mortgage loans is a type of loans in which the claimant does not need to submit any documents, such as evidence of his/her earnings or creditworthiness. As a general rule, the general notion is that you should be able to obtain a home based mortgages even if your earnings are hard to verify or you have little or no previous experience.
The traditional practice was that those who applied for a no-doc had to pay a higher down premium than for a normal mortgaged item. If a no-doctor hypothecary claim is mainly authorized on the basis of the salability of the collateralized ownership and not on the borrower's capacity to pay back the claim, it is referred to as an assets claim.
In the 2004-2006 US real estate boom, no-doc mortgages were aggressively promoted as fast-track loans that you could get without a lot of red tape. Rather than being a credit only for those with difficult to verifiable income, they became loans for anyone who wanted a fast and simple credit and did not care about the high interest rates.
And even claimants who took papers to the lender's bureau could be persuaded to instead chant for a no-doctor mortgages as it was faster and the borrower liked the higher interest rates. A low-doc mortgages is similar to a no-doc mortgages, but needs some more documentary evidence from the mover.
For example, these loans can be obtained from a self-employed worker who cannot submit proof of his or her earnings in the form of a declaration of taxation, but has some other documents at his or her disposal, e.g. BAS statement or account statement. Ever since the US sub-prime crises, most large creditors have only approved low-doc mortgages to claimants with sufficient creditworthiness.
Since the introduction of this standard, the share of credit losses on low documents has fallen significantly. NINA means No income No asset. A NINA home loans in the United States is a type of loans where the claimant does not need to provide evidence of the revenue or asset that needs to be authorized for the loans to be granted.
Originally, NINA loans were seen as a means for people with hard to trace income to obtain mortgages. Soon they became a way for mortgages agents to authorize as many loans as possible without having to deal with a lot of paperwork and risks to find grounds for not authorizing the loans.
Loans from banks to banks were a major contributor to the US sub-prime crises. The NINJA loans is a game on loans given by our company, and represents no revenue, no jobs, no assets. Whilst the Niña mortgages were at least apparently sold as loans for someone who had a career - but a career where the precise level of one month's salary was hard to verify or forecast - the Niña loans are loans that only require a sufficient amount of money / creditworthiness to be granted for the loans.
Like NINA loans, NINJA loans were a major contributor to the US sub-prime mortgage market as well.