Qualifying For A Low Doc Mortgage

2011 April 21

There are many mortgage lenders, banks and brokers that now offer low documentation mortgage loans to people who are self-employed, independent contractors or simply prefer the privacy of not declaring their income. Borrowers who are self-employed often having trouble securing a traditional mortgage home loan because they do not have formal income verification. A Low Doc mortgage loan offers those borrowers the flexibility of a stated income or Low Doc mortgage loan based only on a self-declaration of income, along with a credit report and a twenty percent down payment on the property.

If you are applying for a Low Doc mortgage loan, it is important to remember that although you can have bad credit, you most likely will need to have a clean track record for the past twelve months. In other words, it would be best to keep your credit report in good shape for at least twelve months before you apply for a Low Doc home loan. There are also some additional considerations. For example, most Low Doc loans are capped at eighty percent of the appraisal value of the property, for a maximum loan amount of 1.5 million dollars, and Low Doc Loans are often more expensive than traditional full documentation mortgage loans due to the higher credit risk profile.

Even with these limitations, Low Doc or No Doc loans are very useful for borrowers who do not have formal income verification documentation. Borrowers who are independent contractors or self-employed often fit this profile, because they do not have W’2s or tax returns to verify their income. Low doc loans allow banks and mortgage brokers to extend credit to borrowers who have a good credit history, at least for the previous twelve months, without requiring proof of income. Remember that your credit history over the last twelve months is weighed the most heavily, as opposed to your entire credit history.

Acquiring a Low Doc mortgage loan may be the first step to rebuilding a great credit profile. Many people with credit problems find that a home loan, with less stringent guidelines than a traditional mortgage loan, will help them to repair their financial situation and get them back on their feet. In order to qualify for a Low Doc home loan, you may need to first obtain a personal debt consolidation loan to roll your monthly payments together, thereby lowering your overall monthly debt load. A debt consolidation loan for people with bad credit may even keep you out of bankruptcy, while you are working on qualifying for a Low Doc mortgage loan.

Low Doc Home Loans are usually more expensive than traditional home loans due to the higher credit risk profile. These types of mortgage loans are mainly geared for customers who want to purchase a residential house, refinance an existing home or buy an investment property. This is one of the easiest mortgage loans to apply for and is quite fast in the underwriting process due to the limited documentation requirement. As the borrower, you would only need to sign a statement certifying your income. You will also need at least a 20% down payment and a decent, although not perfect, credit rating. Additionally, before applying for a Low Doc loan make sure that there are no delinquencies on your credit report over the last twelve months.

After twelve months of timely mortgage payments, you can apply to roll your loan over to a fixed rate. In order to do this, you must provide proof of your stated income from you initial mortgage documentation. Usually this proof comes in the form of tax returns. The income documentation must at least match the stated income on your original loan documents. If you have a variable rate mortgage, it is important to roll your home loan over from a variable rate to a low, fixed rate, so that you don’t get over your head if the interest rates rise expectantly.

A Low Doc mortgage loan is a relatively quick and easy process to securing home financing. It is very important before you apply for a Low Doc loan to make sure that you have a substantial down payment of twenty percent plus closing costs, as well as a clean credit report for the last twelve months. Low Doc or state income documentation loans are wonderful financial products for borrowers who do not have formal verification of their income. They are also great financial instruments for re-establishing a good credit profile.

If you have bad credit and are self-employed, do not lose hope! With some diligent effort and savings, you will be able to secure a Low Doc mortgage loan from a financial institution, mortgage broker or bank. If you have bad credit or a very high debt ratio, your first step may be to secure a personal debt consolidation loan. A debt consolidation loan will help you to repair your credit rating and lower your overall monthly debt load. With this advantage, you will be in much better shape to qualify for a Low Doc mortgage loan.

2 Responses leave one →
  1. December 21, 2014

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  2. July 15, 2015

    剛才測試發現用find物件,execute方法的replaceall引數(即word全部取代功能)果然很慢,若改為下式則快多了:只是我目前還抓不穩range的start 和 end的數值.還須多加測試.關鍵是不要用range去比對,而是先將range的text值賦予一字串變數.我也想過用open for input as 的敘述試試.再說.Sub replacetest0() ’2012/6/5Dim a As Range, x As Long, q As StringDim s As Date, e As Date, g, i’Set a = ActiveDocument.Range’Debug.Print Len(a)s = VBA.Timerq = ActiveDocument.Rangex = InStr(q, “翁方綱”)’x = InStr(a.Text, “翁方綱”)For Each g In ActiveDocument.Comments g.DeleteNextWith ActiveDocument Do Until x = 0′ .Range(x – 1, x + 3 – 1).Select .Range(x – 1, x + Len(“翁方綱”) – 1).Text = “孫守真” i = i + 1′ If i = 68 Then Stop x = InStr(x + 1, q, “翁方綱”) If .Range(x – 1, x + 3 – 1) “翁方綱” Then e = VBA.Timer Debug.Print e – s Debug.Print i Stop End If ‘a.Text = Replace(a.Text, “翁方綱”, “孫守真”) ‘a.Find.Execute “翁方綱”, , , , , , , , , “孫守真”, wdReplaceAll ‘果然太慢!! LoopEnd Withe = VBA.TimerDebug.Print e – sEnd Sub

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