subject: No Doc Loans - The One Option that Fits More People than Any Other [print this page] No Doc Loans - The One Option that Fits More People than Any Other
No Doc Loans
When you are searching for a different type of loan that will help you, then you need to go after one of the many no doc loans that are out there. These are typically loans that work well for refinancing your home, purchasing a new home, or even just as a signature type of loan.
The most common usage for these types of loans is for those that are not able to prove their full income because they work for cash or because they own their own business. This loan will cut out all the income documents and will allow you to get the loan you need without nearly as much trouble.
What to Expect from No Doc Loans
The most important thing to understand about no doc loans is that you will not be getting the best possible interest rate on the market. This is simply because the lender is taking a bit more of risk on a loan that is not supported by income documentation. This means that the lender has to make a bit more money off of the loan so that they can justify making the loan.
You should also expect that when you get into no doc loans you will have less to prove when it comes to your income and other documentation. Typically the most you will have to do is write a number down as your income and sign the piece of paper. This may be all that is expected of you for your income documentation.
Getting No Doc Loans
The best way to go about finding these types of loans is to ask the different mortgage lenders that are out there. If you have a very high credit score you may be able to go to your bank and get one of the no doc loans, but if your credit is not nearly perfect, then you might need a non-conforming type of mortgage lender.
The bottom line is that if you want to get a loan for your home or any other reason and you know proving your income is not going to be easy, then you need to consider a no documentation type of loan. This type of loan might come with a bit higher interest rate, but it is an option for those that do not get paid regularly from a job. You can use no doc loans to refinance your mortgage, take out a second mortgage, and even to buy a new home.
