What Is a No Income/No Asset (NINA) Mortgage?

No income/no asset (NINA) mortgages are a type of reduced documentation mortgage program where the lender does not require the borrowers to disclose their income or assets as part of the loan calculations. However, the lender does verify the borrower's employment status before issuing the loan.

Learn more about how a NINA mortgage works, who can benefit from using one, as well as some of the pros and cons.

How No Income/No Asset (NINA) Mortgages Work

A no-income/no-asset (NINA) loan has less strict requirements for income and asset verification. These mortgages might be used by borrowers who do not want to or cannot provide the typical required financial inform🐠ation. They may also make sense for gig workers, self-employed individuals, and other professionals whose sources of income are difficult to verify or consistently document.

Mortgage lenders instead approve this type of loan on a declaration that confirms the borrower can afford the loan payments. NINA loans usually fall into the Alt-A classification, with a borrower risk profile between prime and subprime.

NINA loans have a higher 澳洲幸运5官方开奖结果体彩网:interest rate than a prime mortgage since hoꦇmebuyers who don't disclose financial data are more prone to default.

NINA loans are also known as "No Doc" mortgages. However, an actual No Doc loan does not require the borrower to prove their employment status in any way. A NINA loan will require some income verification, although with far looser criteria than a standard loan.

Following the 澳洲幸运5官方开奖结果体彩网:2007-08 Financial Crisis, NINA loans have become harder to com🉐e by as financial firms have tightened their lending criteria.

NINA vs. NINJA Loans

The slang term 澳洲幸运5官方开奖结果体彩网:NINJA loan applies to credit extended to a borrower with no income, job, or assets. With this type of loan, the bank approves the mortgage based solely ✨on the borrower's credit score🧸.

Unlike a NINA loan, a NINJA loan can be issued to an individual with no income at all. NINJA loans became less frequent after the 2007-08 financial crisis, as the government implemented new regulations to improve standard lending practices.

Risks of No Income/No Asset Mortgages

In some circumstances, a borrower may be enticed to use a NINA loan to get a mortgage they cannot afford with their income. In some cases, mortgage fraudsters will encourage you to take out a NINA loan for a guaranteed fee or return, only to sign themselves as the ownproperty owner lender or mortgage broker should never persuade you to use a NINA loan to get a mortgage if you will not be able to ꦡrepay. Also, more traditional mortgages are reasonably available at a lower interest rate.

NINA loans played a role in the 澳洲幸运5官方开奖结果体彩网:subprime mortgage crisis. Predatory lenders used this type of loan to approve mortgages that otherwise would not qualify. As a result, many home𝓡buyers who t💃ook out NINA mortgages in the mid-late 2000s defaulted on their loans.

NINA Refinancing Options

If you want to refinance at better rates but cannot meet the income requirements of a traditional mortgage, you may be able to use a streamlined refi🐼nance, depending on your mortgage type.

With some specialized mortgages, you won't need to provide proof of income to get a better interest rate. They include:

• VA interest rate reduction refinance
• Streamlined financing for FHA-backed mortgages

You must be current on your home loan and c🐲hanging to a loan that is in your financial best interest, or one that saves you money.

Frequently Asked Questions (FAQs)

The Bottom Line

NINA mortgages, or "no income, no asset" mortgages, are specialized loans for borrowers who may not qualify for traditional mortgages. They usually have higher rates and are higher risk for the lender because these borrowers are more likely to default. Today's regulations require lenders to verify that borrowers can pay their monthly mortgage payments.