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Home Loan Documentation Types

By Scott Gormley

Mortgage and Lending with Oak Valley Mortgage-California Home Loans and Refinancing

January 16, 2007 03:56 AM

Are you wondering what types of documentation loans are available? Banks and investors have come up with a variety of loan types to help borrowers qualify easier into home loan and refinance products.

While some may be worried about being able to qualify for a home, you'll be amazed at the products available in the marketplace that you can take advantage of to purchase or refinance a home.

Feel free to contact me with your California Home Loan needs. I will go through all of your information with you and I'll be sure to match your particular scenario up with the products available in the current marketplace at competitive pricing!

Full Doc-

Full Documentation refers to standard Fannie Mae/Freddie Mac documentation. It is in the form of fully completed documents that are sent directly to the Borrower's employer or depository and upon completion are returned directly from the employer or depository. Full Doc will include Income,Assets,Employment Verification.

Alternate Doc-

Alternate Documentation allows documentation to be obtained directly from the Borrower rather from the Borrower's employer, bank or mortgage servicer.

Reduced Doc-

This documentation type requires that the primary source of income to be verified while the amount of income, although disclosed, is not verified. Unearned or passive sources of income, if used to qualify, must be verified in the standard manner.

No Ratio Test-

The Borrower's source of income is verified, but the income amount is neither disclosed nor verified.

No Income No Assets (NINA)-

The Borrower's employment, income, or assets are not disclosed or verified.

Streamline-

This option allows Borrowers with good credit to qualify for a new loan with minimal documentation.

Stated Income/Stated Assets-

The Borrower's employment is stated and verbally verified. The Borrower's income and assets are stated and not verified.

It should be noted that certain loan programs may contain specific criteria that are more restrictive and/or different from standard guidelines. Be sure to ask a mortgage professional what the guidelines are for your particular scenario.

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/

Blog: http://www.caloanblog.com/

"You find the perfect home, we'll find the perfect loan!"

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Glen Williams

Lenders Direct Capital - NO LONGER - Garden Grove, CA

Here's one that we do a lot of business with: LIMITED DOC "VOE ONLY"

Did you know we can use a verifiable written VOE as LIMITED DOC on both our Lenders Premium Blend® (80/20) or our Lenders Choice® (up to and inclusive of 100% one loan) product.

We accept the written VOE as complete income documentation under our limited doc and we never require asset verification, source or seasoning.

We will not treat it as FULL doc in instances where we require true Full Doc (i.e. 620 FULL DOC no B/K seasoning or NO Trades enhancements) or our stand alone second but everything else works.

One Piece of paper can save you as much as .75% in rate over STATED!

And of coarse, we'll close it fast.

glen.williams@ldcc.com

Wholesale Account Executive

Lenders Direct Capital Corporation

Jan 16, 2007 05:28 AM

Kyle Frazier

Christie's Great Estates | Pacific Union International - Mill Valley, CA

Kyle Frazier , CRS & Marin CA Realtor

thanks for the overview and terminology.

Jan 16, 2007 08:19 AM

Kenneth Fach

Amerisave Mortgage Co - Tallahassee, FL

What are the credit score ranges for the various doc types?

Jan 18, 2007 12:56 AM

Scott Gormley

Oak Valley Mortgage-California Home Loans and Refinancing - Chico, CA

Hi Kenneth,

The credit score ranges vary, depending on a few other variables. For example:

Loan to value, Total Loan to Value and loan amount. It really varies between investor to investor. The Alt A and subprime investors will be more aggressive than the A paper lenders...But ofcourse, the pricing will increase as well..

Scott

Jan 18, 2007 02:37 AM

Anonymous

Glen W/ LDCC

With Lenders Direct (R) we will do Full or limited (Explained above) Doc loans to 100% at a FICO score of 600 and we will do a 500 Fico score to 85%. If your borrower needs a "Stated" loan to 100% we require a 640 score and we will do 80% LTV with as low as a 500 score.

There are other guidelines that come into play with regard to past credit history and I would be glad to provide you with that information if you would like to send me an email. I am geared more towards the subprime and Alt-A market but I am sure that Scott would be more than happy to help you understand "A" paper products.

Jan 18, 2007 03:04 AM

SHAUN WREN

LICENSE IS NOT PLACED - Lakeland, FL

Thanks for the post. Useful information.

Kenneth- It would depend on the investor. Rule of thumb is : The higher ther score the greater the risk tolerance. Each program has its own benefits. The lower the risk , the better the rate.

full doc =best rate

no doc=higher rate

subprime=highest rate

private money=oh my god that is high.

Jun 26, 2007 08:22 AM

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