OK, finacial education needed here. What is OO and NOO? What is the difference between stated, no ratio and no doc?
OO = Owner Occupied
NOO= Non Owner Occupied
Stated= Verifiable employment (taxes, business license, W2) State amount of income.
No Ratio= No income is represented. This is used when there is a high DTI (Debt to Income).
Credit standards are generally a little higher for Easy / No Doc loans. Borrowers must have maintained a good repayment history within the last two years. Additionally, some lenders will require borrowers to maintain higher bank balances than typical applicants usually must have.
Lenders will assess higher interest rates and fees on loans when little or no documentation is provided to substantiate the borrower's income. Expect the interest rate to be about one-half to one percent more than the rates on a fully documented loan. Consequently, Easy and No Doc loans should only be used when necessary, not simply to avoid the paperwork requirements of a Full Documentation loan.
Easy and No Doc loans could be classified into "Stated Income", "Stated Assets", "No Income Verification (NIV)", "No Income / No Asset (NINA)", "No Ratio", etc. With "Stated Income" loan, the borrower can simply state his income on the application, and do not have to provide any documentation to substantiate this stated income. Lenders usually verify that the borrower has assets that logically match the stated income. With "No Income / No Asset" loan no income and no assets are verified.
