Low Doc Home Loans: The Basics
The opposite of the full doc mortgage is the low doc home loan. In this situation, a homebuyer cannot provide full financial documentation for several reasons. All mortgage variations have a specific audience in mind. The low doc loan targets individuals who do not have access to three months of payslips. They have access to three months of bank statements. However, they do not show consistent income.
Small business owners, independent contractors, and gig workers receive income as work becomes available. Small business owners must continually reinvest profits into their companies. Therefore, their income stream looks different. Lenders conduct a thorough financial background check to find out if the applicant can repay the debt in full and on time. An applicant who lacks payslips becomes a risk.
As more individuals become non-traditional workers, the lending market realised that it started missing an important segment of the public. Thus, the low doc loan became more accepted and issued by lenders.
Mortgage House has always had its finger on the pulse of innovation in the lending market. Thus, our loan specialists have a high comfort level with low doc mortgages. In addition, they have access to tools that help them evaluate each application efficiently.
To improve your loan terms, it’s possible to refinance a home loan.
Low Doc Home Loans Conclusion
Small business owners, independent contractors, and gig workers can become homeowners in 2022. The loan product that fits their financial circumstances is the low-doc home loan. Mortgage House issues this loan among several other variations. To start the application, contact our loan specialists.