A loan requiring no documentation of income. This type of loan is ideal for self-employed individuals with good credit.
These loans are designed for those who do not wish to disclose or verify their income. The following is not stated in the application: Employment, Income, or Assets. The down payment can come from anywhere and does not need to be the borrowers' own money. The down payment for purchases must be a minimum of 10%. This type of loan is very popular among independent contractors or people with several sources of income. Typically, these loans require a half point to a full point and a half above a standard rate.
A mortgage product that does not require any documentation or disclosure of employment, income, or assets. This type of mortgage is offered at a higher interest rate because of the risk to the lender or investor.
Similar to a low doc loan, but you require no proof of income. Instead you will be required to sign an agreement certifying that you will be able to service the loan. With this type of loan, you may only be able to borrow a smaller percentage of the property value (i.e. 65% as opposed to 80%).
No Doc loans or asset loans are loans secured against property where no financial statements, tax returns or income information is required. No Doc loans are similar to low doc loans but often require even less information from the borrower. No Doc Loans generally permit lower loan to value ratios (LVRs) than with Low Doc and fully verified loans.
