Everyone doesn’t have a specified regular income, and when a person doesn’t have a fixed income or cannot provide documents in support, he become ineligible for a home loan. For the benefit of such people low doc home loans have been introduced, which have now transformed into smaller mortgage finance solution for such people.
Getting a home loan isn’t as easy as it looks first up, there are many formalities associated, which makes it really lengthy and cumbersome process. However, when you want to purchase a property, you will need a home loan. And to get a home loan, you will need proof of income, assets and liabilities etc to prove your credit worthiness.
Low doc residential loans are designed specifically for self-employed people or casual workers, who have income and assets, but are unable to provide the financial documents required at the time of application for loan. To apply for a low doc loan or low document loan, a person needs to file in a written application, this application works as a self-declaration of income derived from business for casual workers and self-employed. People with bad credit history are also eligible to apply for low documentation loans.
Benefits of low doc home loans
· These loans are suitable for people who do not have financial documents to prove their regular income
· Low doc loans require no or very minimum paperwork at the time of application.
· People with bad credit history can apply for a low document loan
· Low doc loan is passed on self-verification, applicant himself states his income. No financial verification needed
Types of Low Doc Products
· Low doc 60: Under low doc 60 an applicant can get a Loan to Value Ratio of 60 percent. The applicant needs to provide an application for self-verification along with accountant’s declaration. The loan can be taken for purchase of refinance.
· Low Doc Construction: The loan covers up to 80 percent of the value, and can be used for purchase of refinance.
· Low Doc Platinum: The loan covers up to 80 percent of the value; it requires self-verification and accountant’s declaration.
· Lite Doc Express: The loan covers up to 80 percent of value. Self-verification and accountant’s declaration is required for application.
· Low Doc Easy: The loan covers up to 85 percent of Loan to Value Ratio. Application for Self verification along with accountant’s declaration is required. The loan can be used for purchase of refinance.
Low Doc Loan Options
Various types of low doc loans are available, some of them include:
· To purchase property
· For refinance
· Low doc loans for business expansion
· Loan to pay tax debt
· Loans with no mortgage insurance
· Low doc home loans to purchase or refinance residential land
· Low doc construction loan to build more residential property
· Specialist low doc loans for applicants with bad or not so perfect credit history
Author Bio: I’m Andrew a specialist mortgage finance consultant of Red Rock Mortgage Group an independent mortgage finance company with 7+ years’ experience in writing finance topics.
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