When you are on the hunt for a loan or mortgage as a self-employed can be definitely harder than a person who is employed full time. A No doc mortgage loan applies to home loans that require a minimal amount of documentation for the application. For example, when a person applies for a traditional mortgage or loan there is a requirement of a lot of personal information including an income verification, employment history, tax documents and information about the person’s assets. With a No Doc loans mortgage applicant go through a credit check as well as an appraisal of their property. There isn’t a requirement to prove your income or employment status. This means that the self-employed that are looking to own a home or take out a loan should have an easier time getting approval through a No Doc loan compared to the traditional measures.
No Doc Loans are great if you are self-employed or do have the right kind of income verification or tax documentation that would be needed for a traditional mortgage or loan. A No Doc mortgage applicant isn’t as easy as not having those things. It also means you have to have an excellent credit score because lenders will only offer these loans or mortgages to applicants who have high credit or high down payment. This is because they are taking a very high risk for requiring so little of their applicants. The lender also requires that you have the approval of the home that you wish to buy if you are applying for a No Doc mortgage. This is because this type of loan poses quite a risk to the lender. It also means that you are required to have a much higher down payment than average.
Lastly, the issue of privacy changes the game. With your traditional loans and mortgage, you are providing a lot of information about yourself upfront which means your interest rate will be lower because you pose less risk usually. With a No Doc situation, you are going to pay a much higher interest rate in exchange for more privacy about your personal information and financial standings. This means that if privacy is important to you or you don’t have the right documentation to prove your income or employment this type of loan may be the right choice for your personal situation.
If you are interested in pursuing a No Doc mortgage or loan you can trust US Direct Lender for a quick application process. We are a direct lending company which means we use our own money and underwrite our own loans. For you, this means our process for approval move much more quickly than a traditional lender. We also work with investors to fund many different loans including Full doc, No Doc and no tax return loans. You can schedule a free consultation today by calling (626) 460-8900. Don’t allow yourself to miss out on a much-needed loan or new mortgage because you have an employment status that doesn’t meet the status quo!