What Is a No-Income Loan? What You Need To Know


May 08, 2022 By Susan Kelly

A no-income loan is a loan that a lender gives to a person who doesn't have a traditional way to make money, like a job. You should know about no-income loans because you might not always get paid by an employer. This kind of loan can make the most sense for freelancers, self-employed people, and professionals whose income sources are hard to prove or document consistently. Find out what is a no-income loan and how you can meet the criteria.

How Loans with No Income Work

These loans work the same way as other loans. But loans for people with no income requirements have another way to pay them back with interest. So, Lenders will need to see your credit record, bank balances, and evidence of any assets that you can pay back the loan. The more stable your finances are, the more likely a lender will agree to give you a loan.

Lenders look at your money, credit score, property, and any other payments or distributions you get to figure out how much of a risk you are to their business if they give you a loan. If they think you'll be able to pay them back, they'll probably say yes to your request. You can show that you can make payments with many different kinds of liquid or cash-equivalent assets, monetary compensation, benefits, or other income sources.

Kinds of No-Income Loans

If you are looking for a loan and you have no 2nd choice but to get a no-income loan, it is essential to know what types are there. There are generally 4 kinds of loans for people with no income:

  1. SIVA (Stated Income, Verified Assets)
  2. NINJA (No Income, No Job, No Assets)
  3. NIVA (No Income, Verified Assets)
  4. NINA (No Income, No Assets)


Someone can get a SIVA loan if they have income but not enough to pay back the loan. However, they must have enough verified assets to put up as collateral for a lender to feel comfortable giving them money.


Before the economic meltdown of 2008, people often took out NINJA loans. They were loans given to people based on their name and the promise that they would pay them back. But borrowing regulations have made it tougher to receive them.


The NIVA loan is usually available to people who don't have a traditional or alternative source of income. Before a loan is given, assets must be appraised to determine their worth and then put up as collateral.


NINA loans are usually only given to people who own rental property and have rental income. For the loan to be approved, these investors must show that they have enough money to pay back the loan.

Risks of Having No-Income Loan

A borrower might be tempted to use a NINA loan to get a mortgage that is too expensive for their income. A lender or mortgage broker should never tell a borrower to use a NINA loan to get a mortgage if they won't be able to pay it back. Also, you can get more traditional mortgages with lower interest rates. The crisis in the subprime mortgage market was partly caused by NINA loans. This type of loan was used by predatory lenders to approve mortgages that would not have qualified otherwise. Because of this, many people who got NINA mortgages in the middle of the late 2000s couldn't pay back their loans.

Other Options for No-Income Loans

If you can't get approved for a no-income loan, you still have other options. Before you choose one of these loans, it's a good idea to think about what else you can do.

Request a friend or family member for a loan

Instead of going to the bank, ask a friend or family member if they can help. You'll get better terms. Just make sure you pay back what you owe, or you could lose a good friend.

Community Resources

Look around your neighborhood to see if there are any resources you can use. For example, a food pantry, a fund for people who can't pay their bills, or a religious congregation might be able to help you cover your short-term costs without taking out a loan. Crowdsourcing is another way people can help you get money for a mortgage.

Try different ways to make money

You might want to become a cab share driver. You can withdraw it daily, which lets you make money quickly. You could also do handyman work, take care of pets, or watch children make more money quickly. You can also get extra money by renting out a room in your house or selling things you don't want or need.


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