What is a Low Doc Home Loan?
Low Doc Home Loan
What is A Low Doc Home Loan? is a type of mortgage that requires borrowers to provide a minimal amount of documentation in order to obtain a loan. A lender looks at many factors to determine risk appetite, including the size of the deposit, the applicant’s credit score and other assets. These factors can be complicated by the lender’s lending criteria, so it’s important to research the rates and options available to you. You can also discuss your situation with a mortgage broker to ensure you’ll be able to get the best deal possible. Unfortunately, many banks have removed low doc products from the homeowner application process or restricted them.
Many lenders require borrowers to provide a higher deposit to obtain a low doc loans, but not all of them do. If your circumstances are unique, it’s important to choose the right lender. You can get a Home Loan Specialist to find a lender with a low doc program. Low doc home loans require a borrower to provide proof of their income (typically, an accountant’s letter or bank statement) and a GST-registered ABN. Some lenders are more lenient than others, so long as the applicant has a good income to asset ratio.
What is a Low Doc Home Loan?
What is a Low Doc Home Loan? – A low doc loan allows borrowers to purchase a home without providing the usual income documentation. Instead, applicants sign a self-declaration document, providing a reduced income proof that the bank accepts. These documents are not a replacement for tax returns and other financial documents, and the benefits and risks of a low doc loan are clear. These loans are best suited for borrowers with strong credit histories and stable income, but who may not have the time to provide a lot of documentation.
In addition to low doc loans, no doc mortgage loans are also known as NINA loans. These loans require minimal paperwork and only require the borrower to provide their name, social security number and address for the property. Most mortgage lenders use this documentation to assess the borrower’s ability to repay the loan. These loans are best suited for those who value privacy and want the least amount of paperwork. If you are looking for a no doc loan, the NINA loan might be your best choice.
While all mortgage lenders must check the income and assets of borrowers before approving them for a loan, the added consumer protections make a No Doc loan a viable option for borrowers with complicated income or complicated tax returns. No doc loans fall into one of several types, including stated income and asset loans. Applicants must provide a substantial down payment, which may be made up of personal savings or equity in the property.