Choosing Loan Documentation Types

Loan documentation helps mortgage lenders decide on the types of mortgage or loan that specific borrower can get approved for. Mortgage lenders would recommend the most suitable loan documentation that fits the borrower's financial situation and needs.

FULL DOC	ALTERNATIVE DOC
Verification of Employment Verification of Income	Certified copies of most recent 2 years W-2's 1 full month of year to date paystubs Verbal verification of employment
STATED INCOME	NO RATIO
Income stated but not verified on application Disclosure of Assets and Employment are verified with VOD that discloses 2 month average account balance -Or- 2 most recent bank, brokerage and/or mutual fund account statements Employment must have 2 year history in same field/line of work Income must be reasonable for the line of work the borrower is in	DTI is not calculated Disclosure of Employment and Assets are verified Assets are verified with either a written VOD that discloses a 2-month average account balance, or 2 most recent bank, brokerage and/or mutual fund account statements Employment or recent credit history must be consistent with level of mortgage debt applied for Employment is verified written or verbally and must have 2 year work history in same field/line of work
NINA	STATED INCOME/STATED ASSETS
Income and Assets are not stated on the application and are not verified Disclosure of Employment is required and is verified, written or verbally and must disclose a 2 year employment history in same field/line of work 1 year of documented graduate or post-graduate school history plus one year of employment in the same field is satisfactory Employment or recent credit history must be consistent with level of mortgage debt applied for	Income and Assets are stated on the application but not verified Income state on typed application must be consistent with the initial signed application Disclosure of Employment is required and is verified, written or verbally and must disclose a 2 year employment history in same field/line of work 1 year of documented graduate or post-graduate school history plus one year of employment in the same field is satisfactory
NO DOC W/ASSETS	NO DOC
Income and Employment are NOT stated or verified anywhere on the application Assets are verified with either a written VOD that discloses a 2 month average account balance, or 2 most recent bank, brokerage and/or mutual fund account statements	Income, Assets and Employment are not stated or verified anywhere on the application