Low doc home loans make it easy for the self employed, credit impaired and small business owners
Low doc home loans are ideal for self-employed persons or small business owners who often have more complex financial affairs. No certainty of a regular income, having to arrange your own sick pay and pension and probably having to work long hours are challenges that salaried workers never experience. On top of this, if you are self-employed, you may find it hard to get a traditional home loan simply because you don’t have all the paperwork to verify your income.
Low doc loans cut through red tape
Low documentation loans, also know as “low-doc” or “lo-doc” loans, are designed for self-employed people. Self-employed people often lack the documentation required to get traditional home loans. Low doc loans are different to normal loans in several ways.
Low doc loans are easier to obtain
As low doc loans require less documentation they are often easier to obtain. The interest rate is usually higher than the standard variable rate. Low-doc loans also generally carry a requirement for mortgage insurance which can make them more expensive. There may also be limits on the amount you will be able to borrow (ranging from 60 to 80 percent of the value of the property). Talk to Australia’s leading lo doc mortgage provider to obtain exact details on the limitations of low doc loans.
Low doc home loans are fast
Now that many online lenders offer low document home loans, these loans are faster to obtain due to the lower documentation requirements.
Are you Credit-impaired?
If your finances are focused on growing your business and this leaves you credit-impaired you can still access non-conforming loans. Non-conforming home loans provide most of the features of regular loans, including variable, fixed and split rate loans, as well as line of credit, redraw and offset. However they generally have a higher interest rate due to the higher risk.
You may wish to also view your own a credit report to see what is on your credit file.
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