Key Takeaways
- No income verification refinances are largely gone, but losing income does not eliminate all refinancing options.
- Lenders may rely on assets, equity, payment history, or property cash flow instead of pay stubs.
- Refinancing is just one option, and alternatives like loan modifications, renting, or selling early can help avoid foreclosure.
Refinancing during financial hardship might feel overwhelming, but you have more options than you think. While true no-income verification loans are no longer available, some lenders offer specialized refinancing solutions for borrowers with non-traditional income sources.
Read on to learn about to learn about alternatives to no-doc refinances, like streamline refinancing, bank statement loans, and asset depletion loans
In this article (Skip to...)
- What is a no-income verification refinance?
- Can you still refi with no income verification?
- Types of no-income verification loans
- Alternatives to no-doc refinance loans
- FAQ
What is a no-income verification refinance?
A no-income verification refinance, sometimes called a no-doc refinance or stated income loan, is a type of mortgage refinance that doesn’t require borrowers to submit traditional proof of income.
With most refinance applications, mortgage lenders ask for documents like pay stubs, W2s, 1099s, tax returns, or other forms of income verification to confirm the borrower’s ability to repay. However, a lender may waive those documents with a no-income-verification refinance. For some borrowers, that makes the loan application process faster and more flexible.
Verify your refinance eligibility. Start here
Can you still refinance with no income verification today?
True no-income verification mortgage loans were common before the 2008 financial crisis, but are no longer available in today’s mortgage lending market. The stricter regulations that followed eliminated these no-doc refinance and no-doc mortgage loans due to their role in the housing collapse. However, some lenders still offer non-QM loan programs that use alternative documentation, such as bank statements, credit scores, or home equity, to qualify borrowers who can’t provide traditional income verification.
Verify your refinance eligibility. Start here
Types of No-Income Verification Loans
No doc refinance and mortgage loans are rare today, especially for primary residences, but a few niche options still offer flexibility.
- Stated income loans don’t require pay stubs or tax returns and are now heavily restricted
- SISA loans verify neither income nor assets and are limited to investment properties
- SIVA loans use 12 to 24 months of bank statements instead of traditional income documents
- NIVA loans skip income review and qualify borrowers based on verified assets
- NINA loans require no income or asset verification and are reserved for experienced investors
- NINJA loans require no documentation and are largely obsolete, typically offered by hard money lenders
Most of these options come with higher rates or limited availability, so working with a qualified mortgage professional is essential.
6 alternatives to no-doc refinance loans
No-income verification refinance loans aren’t widely available today, especially through traditional lenders. However, several types of loans still offer flexibility for borrowers who can’t—or prefer not to—provide traditional income documentation.
Verify your refinance eligibility. Start here1. Bank statement loans
Designed for self-employed borrowers and freelancers, bank statement loans use 12 to 24 months of personal or business bank statements to verify income. These loans are often used for primary residences, second homes, or investment properties.
2. Streamline refinance programs
Borrowers with government-backed loans may qualify for a Streamline Refinance, which often skips income verification and doesn’t require a new home appraisal. These options are available for existing FHA, VA, and USDA loans and typically require a history of on-time mortgage payments. To qualify, you generally must refinance into the same loan type you already have.
Verify your Streamline Refinance eligibility. Start here3. Refinance into an ARM
Refinancing a fixed-rate loan to an adjustable-rate mortgage (ARM) can lower your monthly payments significantly. ARM rates start much lower than fixed rates, which offers relief when you’re struggling financially. However, these introductory mortgage rates only last 3-7 years before adjusting to market rates, so your payments could increase substantially later.
A $400,000 home loan at 6.25% fixed costs $2,464 monthly, while a 5.25% ARM costs just $2,208, saving $256 per month or over $3,000 annually. This strategy is most effective if you anticipate an improvement in your finances or plan to sell before the mortgage rate adjusts.
4. Refinance into a longer-term loan
If you have a shorter-term mortgage (10, 15, or 20 years), refinancing to a 30-year loan can dramatically lower your monthly payments. For example, a $400,000 loan amount at 6% interest costs $3,375 monthly on a 15-year term versus $2,398 on a 30-year term, resulting in a savings of nearly $1,000 per month.
While you’ll pay more interest over time, the immediate payment reduction can help you stay in your home during financial hardship.
5. Asset depletion loans
Borrowers with significant savings or retirement accounts may qualify for an asset depletion loan. Instead of verifying income, the lender estimates monthly income based on liquid assets. These loans are best suited for those with high credit scores and large asset reserves.
6. DSCR loans
Real estate investors refinancing rental properties may qualify for a DSCR loan, which focuses on the property’s ability to cover the monthly mortgage payment. Lenders calculate the debt-service coverage ratio using rental income, not the borrower’s personal income.
Fast Fact
FHA, VA, and USDA Streamline Refinances may not require income verification if you already have a government backed loan.
What if mortgage refinancing isn’t worth it?
Sometimes, a refinance just doesn’t lower your monthly payment. You might have already locked in a low interest rate, or today’s rates and closing costs make a new mortgage loan too expensive. If refinancing isn’t the right move, consider these alternatives.
Verify your refinance eligibility. Start here1. Modify your loan
Loan modification provides homeowners with a way to lower their mortgage payments without undergoing a complete loan application process or providing full income documentation. Lenders might lower your interest rate or extend your repayment term to make the loan more affordable.
Flex Modification programs from Fannie Mae or Freddie Mac can cut your mortgage payments by up to 20%. These programs apply to conventional loans, including those for rental properties and second homes.
2. Rent out the property
If refinancing won’t reduce your mortgage payments, renting can help you stay afloat. The rental market is currently strong due to housing shortages. If you can temporarily stay with family or friends, rent out your entire home. You might cover your entire mortgage payment or even make extra to help with other expenses.
Before renting, ensure your insurance policy covers the rental. Screen potential tenants carefully and have them contribute to utilities.
Verify your refinance eligibility. Start here3. Sell before things get worse
If you’re falling behind and can’t catch up, selling rather than risking foreclosure is an option. Losing your down payment, closing costs, and months of mortgage payments can be more damaging than exiting early. Some borrowers move in with family while they regroup. It may not be ideal, but it can offer breathing room and a chance to start fresh.
Tip for Refinancing After You’ve Lost a Job
Ask about non QM options that qualify borrowers using assets, bank statements, or rental income instead of a paycheck.
4 steps to take when you’ve lost income
Losing income can put pressure on your budget, but it doesn’t mean you’ve run out of refinancing options. If you’re trying to refinance with no income verification, here are the steps to follow, especially if you’ve already missed a mortgage payment or anticipate missing one soon.
Verify your refinance eligibility. Start hereStep 1: Contact your lender right away
The sooner you reach out to your loan servicer, the more options you will have. If you’ve lost income sources or cash flow, offer proof of income loss. For example, “you might provide a letter from your physician explaining why you can’t work for the next 60 days,” says Sean D. Stockell, CEO of Financial Fitness.
Step 2: Ask about your loan options
Some lenders provide temporary mortgage relief or alternative options to help you keep your home. You might not qualify for a traditional mortgage, but there could be other loan options worth exploring. As Jason van der Brand, Co-Founder of mortgage provider Lenda, explains: “Most banks don’t want to foreclose on your home.”
Step 3: Stay current on debt repayment
Even if your income is limited, make minimum payments on credit cards, auto loans, and your mortgage loan. Most lenders want to see six to 12 months of on-time mortgage payments before they approve a refinance. That can be a hurdle if you’re already behind, but programs like an FHA Streamline Refinance may help some homeowners refinance with limited income documentation.
Talk to your other creditors, too. Some may allow you to pause payments without flagging them as late, which can protect your credit score.
Step 4: Prepare for the application process
Even if you’re hoping for a no-doc refinance, you’ll likely still go through a version of the standard loan underwriting process. That includes a home appraisal, a review of your loan-to-value ratio, and a look at your credit history and debt-to-income ratio.
FAQs about refinancing with no income verification
Verify your refinance eligibility. Start hereYes, most refinance loans require some form of income documentation. This usually includes W2s, 1099s, tax returns, or bank statements, depending on the type of loan and your employment situation.
Yes, you can refinance without a job, but you’ll need to show you have another source of income or sufficient assets. Mortgage lenders need to see that you can still make your new monthly payments, even if you're not currently working.
Refinancing with no equity is challenging, but certain government-backed loans, such as the FHA Streamline Refinance or VA IRRRL, may make it possible. These programs are available only to borrowers with existing FHA or VA loans and a history of on-time payments.
A no-doc cash-out refinance is rare but possible through some non-QM lenders. These loans are typically limited to investment properties and often require exceptional credit scores and substantial equity.
You can refinance a house as many times as you want, as long as you meet the lender’s requirements each time. Some mortgage lenders may have waiting periods between refinances, and you'll need to show that the new loan offers a financial benefit.
Refinancing is difficult if you are behind, but some borrowers may qualify for loan modification programs or government backed streamline refinances if they bring the loan current or meet hardship guidelines.
