No Doc Loans are not Sub Prime Financing

Or you may know them as Stated Income, No Income Qualifiers, NINA, and SIVA or, well you get the point. These products were initially designed for the self employed business owner, who for a variety of reasons may not be able, or desire to evidence their income to qualify for a traditional mortgage in order to buy real estate.

The designers of this niche mortgage product came up with other underwriting guidelines to compensate for the lack of verifying the applicant's income. These guidelines included superior credit a sufficient down payment and some form of remaining liquid assets in reserve. Over the years however these products have become more lenient in some regard and they are being confused with sub prime mortgages. When in fact sub prime has more to do with credit than income.

The interesting thing is that these so called "No doc loans" underwritten with superior credit, equity and reserves as originally designed perform as well as a standard conforming loan, not as sub prime. In fact as many 35% of all loans these days may have some form of a no doc element to them, yet the foreclosure rate for these mortgages is under 2% even in today's troubled times.

These mortgage products are readily available in their original form although the true sub prime loans have undergone serious scrutiny and more restrictive guidelines in some cases disappeared altogether. For more information regarding mortgage products you can visit our affiliate Choice Mortgage at http://www.choicemortgage.us/ or contact 480-905-1900 to speak with a loan professional.

You can always count on Choice Group Realty to help you with finding homes for sale in Phoenix Metro area.

The Importance of Prequalification in Finding Your Perfect Arizona Home

There are a lot of homes on the Phoenix/Scottsdale markets right now. This is a natural occurrence that has resulted from a slight downswing in the very strong housing market the last few years. As we stated in our last post, it's a buyer's market. But before you run out and start talking to real estate agents, there is one step we recommend you take that could save you a lot of time and frustration: prequalification!

Prequalification does not commit you to anything. It usually doesn't cost you anything. It simply lets you know how much buying power you have to acquire your new home. This is invaluable information to have when it comes time to actually find your perfect home, and it will help you realtor help you save a tremendous amount of time.

To get prequalified, you will have to be able to provide accurate information regarding your monthly expenses and income, as well as your credit history. You don't want to hide anything, because you will be discovered and it will only prolong the process.

Choice Mortgage Company offers numerous flexible programs (including 100% financing) and fast and easy processing. Call us today to help us start getting your financing ready to purchase your Arizona dream home.