Mortgage Basics: Information for First Time Home Buyers

Do I have to prove my income?

Not always. There are several different loan programs which allow you to buy a home without proving your income. Some programs require only 5 percent down for those with strong credit scores. Most non-income verifying (NIV) loans require 20 percent down payment due to the fact that the bank is taking on a higher degree of risk by not knowing how much you earn. All NIV loans have higher interest rates due to the risk involved, but some can be secured with only a marginal rate increase.