No Doc Loans -
No Doc Mortgage need no documentary evidence to
prove financial stability to
obtain a loan. Not like a full doc mortgage, the strength of this loan is on the
security offered and the loan to value ratio of the security. They are typically used by borrowers who are self-employed, have
fluctuating income and do not have tax returns or financial reports. It is hard
to find No Doc Finance since Jan 2009.
A low doc loan is
Since risk is higher in no doc
loan than a low doc home loan L V R on such
equity loans may be lower,
maximum 50% of security value without insurance, also it will attract higher
mortgage interest rates. Some times people use
this method to raise capital for business purposes when they have adequate
equity but no income stability.
All other criteria for such a loan is the
same. A bad credit customer will find it difficult to get a loan on this basis.
Due to financial crisis the type
of loans and the LVR offered has been changed. Originally home mortgages on no
doc basis was a good product from all major banks and other lenders but now some
lenders do not offer these loans.
Once it was noted whether low doc / no doc
loans should exist, then someone may think, under tough regulations such loans
could contribute to loan market a fair deal.
If that is the type of loan you are
looking for, Contact
us Today
