No Income / No Asset Mortgage (NINA)
A type of reduced documentation mortgage program in which no income and no assets are disclosed on the loan application, but employment is verified. NINA loans usually fall into the Alt-A classification, and may carry a higher interest rate than a prime mortgage. Investopedia Says:
NINA loans might be used by borrowers who do not want to or cannot provide any financial information. NINA loans are sometimes called “No Doc” mortgage; however, true no doc mortgages do not require employment verification.
In some circumstances, a borrower maybe enticed to use a NINA loan in order to obtain a mortgage which is out of their reach. A borrower should not be persuaded by a lender or mortgage broker to use a NINA loan to obtain a mortgage if they will not reasonably be able to repay, and when a more traditional mortgage is reasonably available at a lower interest rate. Related Terms:
Alt-A
Liar Loan
Low / No Documentation Loan
Mortgage
No Doc Mortgage
Risk
Stated Income / Stated Asset Mortgage - SISA
Subprime Meltdown |