Lo Doc/No Doc Loans for the Self Employed

Running your own profitable business is difficult enough without the hassles of applying for a home loan. If you are self-employed, you may be denied a traditional home loan due to lack of paperwork to verify your income.

The alternative is to apply for a lo-document home loan (often called low doc loans). Low doc home loans are specifically designed for self-employed people and other non-conforming borrowers who often have not prepared their end of year financials. Or may for other reasons not been trading in a new business for any length of time where their financial data does not accurately demonstrate their incomes.

A Lo Doc or No Doc loan dispenses with the need to table extensive financial information to support home lending.

Advantages and Dis-advantages

With less documentation, obtaining a loan is faster due to the streamlined application process. And while interest rates may be higher than a standard loan, you may be able to transfer to a full-doc loan with a lower interest rate, and at no cost, once you can provide the traditional forms of income verification.