No doc and low doc loans are very difficult to qualify for in today’s mortgage and financial markets. Because of this, most mortgage companies (including Quicken Loans) don’t offer them at this time. For more information, talk to a Quicken Loans home loan expert. We’ll show you how to obtain the necessary documentation so you can qualify for a full doc loan. Call us today at (800) 654-0068.
The more documentation you provide your mortgage lender (employment, income and credit history) the lower your interest rate may be. Many home buyers choose not to offer documentation for personal privacy reasons, and willingly opt for a higher interest rate. Yet, many of these home buyers have a healthy income, or savings, and a credit history. A no doc (documentation) or low doc loan provides increased ease and privacy when getting a mortgage in exchange for a slightly higher rate.
Buyers that opt for a low doc home loan are typically those who prefer not to have their entire life and financial history presented to the lender. For instance, they might be using an inheritance to secure a loan or have fluctuating income from owning their own business.
Ease is a big factor as well. With a no doc or low doc loan, the borrower provides their name and social security number, along with information regarding the property being purchased. The rest is up to the lender.
No Doc Loans
No Doc loans require the least documentation and are for buyers with excellent credit scores. The buyer provides minimal information (usually social security number and general property information) and the lender does the rest.
Stated-Income (Low Doc) Loans
Stated-Income, or low doc loans, typically attract people who work on a cash or commission basis – people who don’t draw a consistent salary. The borrower will need to disclose earnings, usually for two years, and might need to show tax returns and bank statements.
No Ratio Loans
No Ratio mortgage loans are for borrowers who do not wish to disclose their income; therefore there is no debt-to-income ratio for the lender to consider. The no ratio borrower has good credit and abundant assets that make up for the lender not considering the borrower’s income information. This loan can be a quick and easy process for borrowers that would have difficulty gathering documentation.
A No-Doc or Low-doc loan (abbr: No/Low Documentation Loan) refers to a finance product commonly offered by a mortgage lender to consumers who cannot qualify for normal loan products or do not wish to give up their financial privacy. However applicants require a larger deposit either through equity in security or personal savings.
In the United States, Full Documentation Loan refers to a loan where all income and assets are documented. It is typically referred to as a "full doc" loan in the mortgage industry and is a common type of loan used for financing a home purchase. A list of the various types of loans can be found at Mortgage Loan Documentation.
Below is a list of...
Mobile Application (Sulaba Inc)
Legislation relating to veterans' education, employment, and home loan programs : hearing before the Committee on Veterans' Affairs, United States Senate, One Hundred First Congress, second session, on S. 2100 (sections 401 and 404(c)), amendment no. 1575 to S. 2100, S. 2483, S. 2484, S. 2537, amendment no. 1562 to S. 1537, and S. 2546, May 11, 1990.
Book (U.S. G.P.O.For sale by the Supt. of Docs., Congressional Sales Office, U.S. G.P.O.)