No Doc Mortgage Companies? Any Good Suggestions?

[Brian Patrick]

Hi, 

Does anyone know of a good bank for no-doc mortgages? I've looked into Quontic but I don't think their product is truly "no-doc". 

[Chris Mason]

Now isn't the time to rely on "no doc" or "non-qm" or "subprime" mortgages. Those are only reliable in a bull market. We saw the bottom drop out of them in March 2020 when they more or less stopped existing until the Fed turned the money printing presses on.

And, that's happening again. I've received at least a dozen variations of the exact email below just in the last week. For context, a normal 1 week rate lock extension is something like 0.14% of the loan amount in extra fees. Check this out:

And, having played this game before: the underwriters at all the non-qm lenders are about to add extra conditions and BS, they will find "reasons" why your loan isn't cleared to close, and have slower turntimes, to ensure that you will ALWAYS need an extension, and/or blow the rate lock and lose the loan entirely, at the 11th hour (after you've removed all contingencies). 

The next step is for the rug to be pulled out entirely, loan denials even when loan docs are out for your signature with the notary, it happened in 2008, it happened in March 2020 (until the Fed $ printers were turned on), and I wouldn't be at all surprised if now (that the $ printers are off again) it happened again, and BOOM there went your $20,000 earnest money deposit, forfeit to the seller, with no practical recourse against the bank (no serious lawsuits or settlements came of it in 2008, or March 2020).