How to Borrow Money Without Proof of Income

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Borrowing money without providing proof of income is significantly more challenging than the typical path of providing bank records and pay stubs to demonstrate an ability to meet the obligations of the loan contract. This process is easier if you have an excellent credit rating or are willing to provide significant security for a loan, such as a down payment or a major asset like a house or car. So-called "no-documentation" loans, particularly mortgages, often have higher fees.

Step 1

Review your credit report and credit score from the three major credit bureaus (Equifax, Transunion, and Experian). You can order your reports directly from each bureau or take advantage of the free annual credit report offered to anyone with a social security number. Verify that your credit score is high. To qualify for a low- or no-documentation loan, you will almost certainly require a FICO score of 720 or higher.

Step 2

Look for providers offering no- or low-documentation loans. Usually, only major national banks and other such lenders can afford to take on the risks involved in such loans. The interest rates are often higher usually additional fees are tacked on. Such loans are targeted towards the self-employed who have difficulty demonstrating regular income or people interested in protecting their privacy.

Step 3

Apply for low- or no-documentation loans. The most common such loans are for mortgages, but such loans exist for cars and personal loans as well. You will not be required to provide proof of income, although the lender will attempt to ascertain how much you are capable of paying by reviewing your credit reports. Consider offering a significant asset or down payment as security for the loan to improve your chances of approval and to get a lower interest rate.

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