As a bartender in our hometown’s swankiest club, we make quite a bit of money in tips. So much, in fact, that we think we’re finally ready to take the plunge and buy ourselves a house. It’s exciting to be sure, but trying to secure a mortgage based on income from tips is no small feat. That’s why we’re pretty stoked about NINA loans: loans that don’t require us to disclose our actual income or our assets (“NINA” stands for “no income/no assets”). All we have to do is prove that we’re employed.
Sounds great, right? And for some, NINA loans are the perfect solution. But we should be aware that NINA loans come with some drawbacks. Like...we’re going to end up paying a higher interest rate than we would with a traditional mortgage. That’s because the default risk on these types of loans is way higher than it is with those traditional guys. But if our work situation makes verifying a consistent income difficult (i.e., we live off tips, we’re an independent contractor, etc.), or if we just don’t feel like sharing our income and asset data with a lender, then we might want to at least take a gander at NINA loan options.
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Finance: What is a Mortgage?345 Views
Finance allah shmoop shmoop What is a mortgage Well people
a mortgage is just dead it's alone but one with
special tax treatment For most people simply put Any interest
you pay on a mortgage to buy a home is
tax deductible Morty morton's inputs down a hundred thousand bucks
to buy a home that costs four hundred big ones
his mortgages three hundred grand at five percent interest per
year So that's fifteen thousand dollars a year he pays
to rent the money from the bank which he uses
to buy his dream home with the loop de loop
waterslide Morty earns one hundred grand a year and pays
tax on his last fifteen thousand of earnings soas faras
The irs is concerned since morty can deduct his fifteen
thousand dollars in interest against his earnings he does not
in fact earn taxable wages of one hundred grand annually
Instead he earns taxable wages of eighty five thousand dollars
a year Essentially with government is doing is sharing in
some of the cost of renting the money Taub i'm
ortiz home well why would the u s government be
so charitable Well because home ownership has been integral part
of the american dream since the u s of a
i po'ed in seventeen seventy six easy access to mortgages
and then home buying can be a hugely beneficial asset
In the vast majority of cases homes create family stability
a store of wealth and tax dollars for local schools
in the form of real estate taxes So don't feel
bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello
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