Low Doc Home Loan
What is Low Doc or Low Documentation home loan
A low documentation (Low Doc) home loans is a home loan for borrowers who are self-employed and are not up to date with their financials and or tax. Applicant must have a clean credit file.
There are several reasons why clients apply for a lo documentation loan, but the main reasons are they have complex business structures or are not up to date with their taxation obligations. The most common reason is that many self employed borrowers do not have to do their tax until May of the following year, so they are technically always behind.
Advantages of a Low Doc Home Loan
The loan is usually approved if the borrower meets the following criteria: