No Doc Home Loans are home loans that don't require you to verify your job
, prove your income, and in some cases have your credit checked. These home loans are made for a specific type of person and situation. They are not for everybody and here are a few situations that can benefit from this type of loan with.
Situation #1
If you are a self employed individual and you have trouble proving your true income, then a no document loan can be beneficial for you. This is a typical and popular situation for a no doc home loan. You will be able to get what you are after if you are self employed and have trouble proving what you actually make.
Situation #2
Tipped employees that don't claim all their tips are another group of people that the this type of home loan fits very well. This is a group that makes much more than they can prove and it is hard to get a good loan because of it. The no doc home loan is perfect for the tipped employee. This situation is a very popular situation to use a no document loan for.
Situation #3
If you have worked at the same job for over 2 years, but your debt to income ratio is too high for a normal mortgage, then a no doc home loan is NOT for you. Mortgage brokers might try to talk you into a no doc loan in order to get your business, but if your debt to income ratio is too high for a regular mortgage, then it is a huge mistake for you to agree to a no doc home loan.
So now you know which situations are good for a no doc home loan and a little about when you should avoid one. Make sure to shop your no doc home loan quote to make sure you are getting the best quote for you.