Low Doc Loan

A low documentation (low doc) loan is a type of mortgage that is designed for individuals who may have difficulty providing traditional income and financial documentation typically required for a standard mortgage application. It is important to note that the specific eligibility criteria may vary between lenders.

Many self-employed individuals, Small business owners, Investors and recent immigrants may have variable income or difficulty providing consistent proof of income through traditional means. Low doc loans are often used by borrowers in these circumstances, who can provide alternative documentation, such as bank statements or business financials, to demonstrate their ability to repay the loan.

Low doc loans typically come with higher interest rates and may require a larger down payment to mitigate the lender’s risk. Borrowers should carefully consider their financial situation and explore other financing options before opting for a low doc loan.