What Is A No Doc Or Low Doc Home Loan?Posted by Nick Niesen on October 29th, 2010 A "Lo Doc" or sometimes call "Lo Doc Home loan" are mortgage or home loans where documentation for verification of your income is not required. However, all other documentation is. These loans are ideally suited to self-employed, independent contractors, investors, credit rating impaired, ex-bankrupt or clients with arrears on current mortgages and borrowers who have been rejected by traditional lenders. Including people with suitable incomes but to meet bank verification takes valuable times and money. Low Doc Home Loans (Low Document) are usually slightly more expensive than traditional loans due to the higher risk profile. This is primarily for people who are looking to purchase investment properties, residential or refinance existing housing property and don?t have PAYG or current taxation returns confirming their income, which normally sustains a standard investment loan. There are 3 main types of Low Doc or No Document Loans. No Ratio Loans No Doc Loans Stated-Income (Low Doc) Loans If you think a No Doc or Low Doc loan is right for your situation, talk to a mortgage expert. It might be beneficial for you to pay a higher rate for this loan. A good mortgage banker can also show you how to obtain the necessary documentation. Like it? Share it!More by this author |