Sorting Through Florida Mortgage Document Demands; What Needs to be Included?

You’ve heard about no-doc Florida mortgages, right? Under the terms of this product, borrowers needn’t provide lenders with a single document in order to be approved for a home loan. As a result, however, interest rates may be raised.

Conversely, there are full disclosure Florida home loans; you’ll receive the best possible rates on these resources, but will have to come up with an assortment of papers.

To help borrowers better understand these options - and all in between - here’s a rundown of various documentation requirements lenders offer:

Full: Borrower can document income for last two years as derived from one’s job or business, and such income is sufficient to qualify for Florida mortgage approval.

Alternative: Same but the borrower is in a hurry. This is recommended it doesn’t cost anymore.

Stated Income: Borrower has sufficient income to qualify but cannot fully document it because for variety of reasons; it’s business income, borrower changed job or was promoted, there are two incomes but only one is being used to qualify, etc.

No Ratio: Borrower’s income does not meet lender standards, but borrower considers it adequate because he’s accustomed to allocating a large percent of income to housing, has dependable family support, will shortly reduce expenses by paying down other debt, etc.

Stated Income/Stated Assets: Borrower cannot fully document assets, but expects to have enough from gifts, business income, cash-out refi, etc.

No Income/No Assets (NINA): Borrower with a job or business either does not have the income and assets to qualify, or does not wish to disclose them. Borrower might have substantial income-generating capacity, such as a physician moving to a new state, or substantial home equity.

No Docs: Same as NINA but borrower cannot document a job or business.

In general, borrowers receive better pricing the more documentation they provide. However, this can be a hassle. Some individuals may be willing to pay higher Florida home mortgage rates if it means less to deal with during the process.