Get a Low Doc Loan
If you’re wondering “Is it hard to get a low DOC loan?” you are not alone. More investors are looking for loans that aren’t dependent on traditional credit scores or collateral. However, the fact remains that there are a number of lenders that offer low doc loans. Below, we’ll take a look at how you can qualify for one.
Before the housing market crash, low doc loans were an option for many buyers. They were often used by self-employed borrowers or those who received a windfall. Although you might need to provide proof of income to qualify for a low doc loan, you could use a W-2 form or recent pay stub to prove your income. However, if you are considering a low doc loan, you will still need to have a good credit score and enough money saved in a savings account to cover the down payment.
Getting a low DOC loan can be easier than you think, and if you have good credit, there are even less requirements than a conventional mortgage. In addition to lower interest rates, low doc loans are also often available to self-employed borrowers and investors. While you may be hesitant to apply for this type of loan, it is worth the risk. If you are serious about a home purchase, low doc loans can be an excellent option.
Is it Hard to Get a Low Doc Loan?
One of the biggest risks of no doc mortgage loans is their high default rates. These loans, known as Alt-A loans, were a large contributor to the subprime mortgage crisis of 2008, are still available today. A low doc mortgage loan will usually require the borrower to provide their social security number and name. In addition to these two important documents, borrowers are also required to pay down the loan.
Those with good credit and a stable income may qualify for a low doc loan. A lower doc loan may be easier to qualify for, but you should understand that it may have higher interest rates and fees. In addition, it is riskier to borrow more money than you can afford. You might end up paying thousands of dollars more than you need to and have trouble paying off the loan.
There are some lenders that will offer no doc mortgages, but these are becoming increasingly rare. Generally, there are lenders that offer no doc loans, no income verification loans, and stated income loans. These loans are not advertised widely. The most common types of low doc mortgages are offered by portfolio lenders and not by major banks. These mortgages are also known as bank statement loans, and aren’t as widely advertised as no doc mortgages.