No Income Check Home Equity Loans


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This is especially useful for homeowners who need financing but can’t show proof of steady income due to being self-employed or having an income based on percentage of sales which is never the same.

The income verification is a very important part of the application and approval process, sometimes even more than credit verification because income is essential for repayment while credit is just a measurement of the risk involved in the transaction for the lender. In any case, in order to obtain a no income check home equity loan there will be additional requirements to be met.

Normal Income Verification Procedure

The usual income verification procedure consists on the borrower showing proof of a steady income suitable for coping with the monthly payments of the required loan. In order to do this, you’ll need to provide backing up documentation like copies of paychecks or tax presentations if you work on your own.

The problem with this procedure is that when it comes to those who work on their own, in order to calculate income, the lender takes an average of the income stated in the last two years tax presentations so as to avoid the borrower from misrepresenting income by overpaying taxes just once to simulate a higher income.

Requirements For Approval

Though you won’t be required to show proof of a steady income with no income check home equity loans , you’ll need to have a good credit score and history in order to get approved for these loans. Also, you might be required to have a certain amount value of assets like real estate properties, car, etc. that somehow confirm your income statements.

Nevertheless there are loans that require no income and no assets verifications. These are even harder to qualify for and you’ll need to have an excellent credit report in order to get them. With these loans however, you won’t need to document your assets either and thus, the only requirement for approval would be your credit history that needs to be impeccable.

What To Expect

Also, you need to understand that even though these loans are secured, by not verifying your income, the lender is taking a great risk and thus, you can’t expect very advantageous terms on your home equity loan. The greater the risk the lender takes, the more he will compensate it by charging higher interests and fees on the money lent.

Thus, these loans will charge higher interest rates that are not as high as unsecured loans or credit cards but are yet significantly higher than those of regular home equity loans. Also, you won’t be able to obtain as high loan amounts as with common second mortgages nor such lower monthly payments or long repayment schedules. Thus, even if the lender won’t know, you should verify that your income is suitable for affording the monthly payments. Remember that the loan is secured and in the event of default you could loose your property.


Kate Ross is a professional consultant at where she publishes informative financial articles about Bad Credit Loans, Free Goverment Grants and Leasing, among other subjects.


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