Low Doc Loans – How to Get a Loan Without Submitting a Lot of Documents
Low doc loans are perfect for Self Employed people who cannot verify their income when applying for a home loan. Because lenders are very strict in approving loans, a lot of people are finding it extremely difficult to obtain a home loan. The lack of proper documentation keeps these people from fulfilling their dreams of home ownership. This is why low doc loans are available. These are designed to help these people get loans despite not having enough proof of income.
There are many types of low doc loans available for Self Employed Australians that have an ABN Registered and GST Registration if income is over the threshold of $75,000.
Why is there a need for low documentation loans?
These loans are created to provide assistance to people who cannot prove their income to lenders. Before they can apply for a loan, they have to make sure that they have a stable source of income. This is a big requirement because lenders want to make sure that who ever they lend money to will be able to meet monthly mortgage payments.
But not everyone has permanent employment. There are several types of individuals who don’t work exclusively for a company. They are freelancers, contractors, and self-employed individuals. These people make good money, enough to afford a house, but since they are not with a particular company, they would not have proper documents to show lenders to prove their financial status.
This is what makes things difficult for a lot of people. They can afford a house but technicalities like paperwork will make it impossible for them to get the money they need to buy a house.
What can borrowers do to obtain a low doc loan?
Low doc loans will not require a lot of paperwork. Lenders that process them are going to use alternative means to check a borrower’s eligibility. Alternative proof of income should suffice. This makes things easier and faster for both parties. Low doc loans are also available in bad credit options.
How hard is it to get a low doc loan?
Aside from the fact that it will not require you to submit a lot of things, it’s also designed to make loan application very quick and easy. And if you have a very good mortgage broker, you should be able to know everything you need to do. You’ll have no room for errors and you will be pointed in the direction of the right lenders.
What are examples of lenders that offer these?
Here are few of the lenders that offer low doc loans:
– Pepper Money
– M A Financial
– Orde Financial
If you want to get a full list of the different lenders near you that you can approach, ask your mortgage broker.