Getting approved for an investment property loan without income verification can be challenging, but not impossible. Here are 5 tips for improving your chances when seeking investment property financing with no income verification.
Look for alternative lenders who offer no income verification loans
Many traditional banks will require income verification for investment property loans. However, alternative or private lenders are more likely to offer no income verification investment loans. Look for lenders that specialize in these types of loans.
Aim for at least 20% down payment
While some no income verification loans allow less, putting down 20% or more as a down payment shows the lender you are financially committed. A higher down payment can help compensate for the higher risk of no income verification.
Have strong credit scores and history
Most no income verification lenders will still check your credit scores and history closely. Keep your credit scores above 700 and avoid late payments or issues on your credit reports.
Use a co-signer or partner
Adding a co-signer with income or applying with a joint partner can give the lender additional assurance, improving your chances of approval.
Provide bank statements and assets
Although income isn’t verified, providing strong bank account balances and statements can help demonstrate your financial strength and capacity to repay the loan.
Though challenging, with the right approach and preparation, getting approved for an investment property loan without income verification is possible. Focus on alternative lenders, making a sizable down payment, improving your credit, using a co-signer, and showcasing assets.