Are you in need of a mortgage, but you struggle to prove your income? Do you know that you have very good credit and should be able to qualify, but are worried about proving your income? This is where no doc mortgage loans come into play. They were designed for those that have trouble showing how much they really make each year. Here are some situations that no doc mortgage loans work great in and one that does not fit.

First, self employed borrowers were the reason these programs came into existence. You are the ones they originally designed no doc loans for. They help you because you do not have to worry about showing what you really make from your business. With all the things you can write off and the way businesses go it can be hard to show exactly what the real income is from a self employed individual.

Second, those that get paid cash like tipped bartenders and servers or independant contractors that work for cash are also great for these programs. Anybody that has served or bartended knows that they do not claim all their tips and sometimes they do not claim any of their tips. This makes it very difficult to produce documents that prove how much you make in a week, month, or year. It also makes it pretty hard to qualify for a mortgage.

Last, the worst time to ever consider no doc mortgage loans is when you are an employee that collects a regular paycheck and can show your real income at the end of the year. If a mortgage broker is trying to talk you into a no income mortgage and you have documented proof of your real income, then say no. They want you to use this type of program because you have good credit, but really cannot afford the mortgage they are trying to sell you.