Low documentation home loans
Are you self employed? Self employed people can often have difficulty in providing all of the documents required in order to prove their income to the satisfaction of the bank or lender. This can mean that self employed people without the required documents are unable to get a full doc loan but may be able to get a low documentation loan.
This can be a distinct advantage for those self employed people that don’t have the required documents but still want to get a home loan. This can be an advantage especially in a rising property market when prices rise quicker than incomes or people ability to save for the deposit.
Low doc home loans can also be useful for self employed people that have a variable income or have had a unusually low income in the latest year. If the latest year’s income will not accurately income and a low doc home loan can enable self employed people to get the home loan they need. Low doc loans are usually more expensive than full documentation loans. However, despite being slightly more expensive low doc loan can be obtained earlier (before full docs are available). When the full docs are available the borrower can upgrade to a full doc loan and have their loan interest rate and cost reduced.
If you are self employed a low doc home loan may be a useful option. However, if you are able to get a full doc home loan this is often the better option because they can be cheaper. Check with a good mortgage broker to see what your options are and what type of loan is suitable for you!
Did you know that low doc loans are also available for business purposes? Businesses that do not have the required income documentation may also be able to get a loan. Similarly to loan doc home loans, low doc business loans can be more expensive than full doc business loans.