These loans are nominally intended for real estate investors who might have difficulty documenting their income.

No Income loans have been extended to customers with a wide range of credit histories, including subprime borrowers.

No Income loans fill a gap of situations which normal loan standards would not approve. This would seem prudent for a person just owning their main home. However, a real estate investor may have multiple properties and for each may receive only a small amount more than their loan payments on each house, but end up with disposable income.

No Income loans also help borrowers where fully documented loans normally would not consider the source of income as being reliable and stable, such as investors who consistently earn capital gains. Fully documented loans also do not consider potential future income increases.

This type of loan secured by the Mortgage is exempt from any provisions of the Real Estate Settlement Procedures Act of 1974, as amended and Regulation “X” of the Secretary of Housing and Urban Development because the proceeds of the Loan and the Loan proceeds are being used for as an extension of credit primarily for a business, commercial, or agricultural purpose, as defined by 12 CFR 1026.3(a) (1) of Regulation Z.