About No Doc / Low Doc Loans (also spelt 'lo doc')

No document or low document loans are home loans that require little document or even no documentation. These types of loans are not appropriate for most situations. These loans do not require employment verification or income verification. In some cases, they don't even do a credit check. Usually a credit check is required. You may also need to provide at least 20% in equity. That requirement will vary depending on the lender. You should keep in mind that these types of loans are considered to be high risk.

So when would a no doc loan be appropriate? There are a few situations where you may want to consider a low doc loan:

1) One scenario is if you are self employed and it will be very difficult for you to verify your income with paperwork. This is a common situation where a no doc or low doc home loan would be appropriate.

2) Another possible scenario for a low doc loan is if you are an employee that receives a lot of income in the form of tips. Sometimes, these types of employees have difficulty in proving their entire income. A no document loan would work well in this situation.

If you have worked at the same place for more than two years and your debt to income ratio is above the acceptable range, then a low document home loan is almost always not a good choice for you.

As you can see, a no doc home loan is not a good choice for most situations. However, if you are self employed or you make a good amount of money via tips, then it could be a viable option. If you are in the market for a no doc or low doc home loan, then make sure to shop around to find the best rates. It is recommended that you begin your search online.