NO DOC LOANS APPROVED  AT 100% LTV!

No Doc mortgage loans

No doc loans are similar to the no income verification loans, but goes two step beyond that. In addition to no income verification, the true no doc loan also has no asset OR employment verification. If you are short of down payment money, many no doc programs also allow for the use of free grant money.

The No Doc program is ideal for self-employed applicants and borrowers who have unstable income, job history, such as commissioned employees, recently employed borrowers and applicants who receive a large amount of cash (undocumented) income.

Because the TRUE No Doc program does not verify income or assets, they are also often used by borrowers with undocumented income, which often become cash assets. Many jobs, such as servers, valets, door attendants, bartenders and massage therapists, are still predominantly cash-based. Many self-employed borrowers also use no doc loans, because of all the write-offs and depreciations they take on their taxes causing them no to be able to qualify for convential financing. There is often a temptation in those instances to under-report the actual amount of gratuities earned in such jobs.

No Doc programs are riskier for the lender than standard "Full Documentation" loans, because the no income, asset or employment verification features. All the lenders have to work with are the credit rating of the borrowers and the value of the properties being purchased or refinanced. Because of this, no doc loans tend to have higher interest rate, so that the lenders can offset the risk they are taking. Often, no doc loans have a higher down payment requirement than regular conforming or government loans. However, if you have good credit, you may be able to qualify for a 100% no doc loan!

Like everything in life, there is no such thing as a free lunch. However, for many investors, the No Doc program is an intelligent option.