No Income/No Asset Mortgage (NINA): What it Means, How it Works

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Updated April 01, 2024
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What Is a No Income/No Asset (NINA) Mortgage?

No income/no asset (NINA) mortgages are a type of reduced documentation mortgage program where the lender does not require the borrowers to disclose their income or assets as part of loan calculations. However, the lender does verify the borrower's employment status before issuing the loan.

Learn more about how a NINA mortgage works, who can benefit from using one, as well as some of the pros and cons.

Key Takeaways

  • A NINA (no income/no assets) mortgage is a mortgage designed for borrowers who may not qualify for a traditional loan.
  • A NINA loan does not require verification of your assets or income, making them more risky for lenders.
  • Borrowers using a NINA mortgage may have little ability to repay the loan.
  • NINA loans come with higher interest rates than traditional mortgages.

How No Income/No Asset (NINA) Mortgages Work

A no income/no asset (NINA) loan has less strict requirements for income and asset verification. These mortgages might be used by borrowers who do not want to or cannot provide the typical required financial information. They may make sense for gig workers, self-employed individuals, and other professionals whose sources of income are difficult to verify or consistently document.

Mortgages lenders instead approve this type of loan on a declaration that confirms the borrower can afford the loan payments. NINA loans usually fall into the Alt-A classification of loans, with a borrower risk profile falling in between prime and subprime.

NINA loans have a higher interest rate than a prime mortgage since homebuyers who don't disclose financial data are more prone to default.

NINA loans are also known as "No Doc" mortgages. However, an actual No Doc loan does not require the borrower to prove their employment status in any way. A NINA loan will require some income verification, although with far looser criteria than a standard loan.

Following the 2007-08 Financial Crisis, NINA loans have become harder to come by as financial firms have tightened their lending criteria.

Note

Because of their loose criteria, NINA mortgages and similar products are sometimes known as liar loans.

NINA vs. NINJA Loans

The slang term NINJA loan applies to credit extended to a borrower with no income, no job, and no assets. With this type of loan, the bank approves the mortgage based solely on the borrower's credit score.

Unlike a NINA loan, a NINJA loan can be issued to an individual with no income at all. NINJA loans have become less frequent in the wake of the 2007-08 Financial Crisis, as the government implemented new regulations to improve standard lending practices.

Risks of No Income/No Asset Mortgages

In some circumstances, a borrower may be enticed to use a NINA loan to get a mortgage that they cannot afford with their income. In some cases, mortgage fraudsters will encourage you to take out a NINA loan for a guaranteed fee or return, only to sign themselves on as the owner of the property.

You should never be persuaded by a lender or mortgage broker to use a NINA loan to get a mortgage if you will not be able to repay. Also, more traditional mortgages are reasonably available at a lower interest rate.

NINA loans played a role in the subprime mortgage crisis. Predatory lenders used this type of loan to approve mortgages that otherwise would not qualify. As a result, many homebuyers who took out NINA mortgages in the mid-late 2000s wound up defaulting on their loans.

NINA Refinancing Options

If you want to refinance to better rates, but you cannot meet the income requirements of a traditional mortgage, you may be able to use a streamlined refinance, depending on the type of mortgage you have.

With some specialized mortgages, you won't need to provide proof of income to get a better interest rate. They include:

  • VA interest rate reduction refinance
  • Streamlined financing for FHA-backed mortgages

You must be current on your home loan and changing to a loan that is in your financial best interest, or one that saves you money.

Frequently Asked Questions (FAQs)

Are There Still NINJA Loans?

NINJA jobs that required no confirmation of income, job, or assets were once more common. Today's lenders must carefully vet borrowers to ensure they are in a position to pay for their mortgages. You'll need to provide, at minimum, your credit documents and income verification before you can be approved for a mortgage.

What Is a Bank Statement Loan?

A bank statement loan is a loan in which you provide bank statements instead of pay stubs or tax returns to support your ability to repay. They are commonly used by people who are self-employed. These borrowers may have steady income, but it can be irregular compared to a paycheck. In this case, the lender may take an average of your deposits over a certain time frame, such as 12 or 24 months.

Can You Use a NINA Loan to Buy Your Home?

After the 2007-2008 financial crisis, regulators tightened the rules regarding NINA loans. Now, to get a true NINA loan that does not verify your income, you must use it to finance an investment project. You cannot use a NINA loan to finance your primary home.

The Bottom Line

NINA mortgages, or "no income, no asset" mortgages, are specialized loans geared for borrowers that may not qualify for traditional mortgages. They usually have higher rates and are higher risk for the lender because these borrowers are more likely to default. Today's regulations require lenders to verify that borrowers can pay their monthly mortgage payments.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Federal Reserve Bank of St. Louis. “Housing Policy, Subprime Markets and Fannie Mae and Freddie Mac.” Page 11.

  2. Congressional Research Service. "The Dodd-Frank Wall Street Reform and Consumer Protection Act: Background and Summary," Page 18.

  3. U.S. Department of Veterans Affairs. "Interest Rate Reduction Refinance Loan."

  4. U.S. Department of Housing and Urban Development. "Streamline Your FHA Mortgage."

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