No doc loan

No doc loan

A No-Doc or Low-doc loan (abbr: No/Low Documentation Loan) refers to a finance product commonly offered by a mortgage lender to consumers who cannot qualify for normal loan products or do not wish to give up their financial privacy. However applicants require a larger deposit either through equity in security or personal savings.

Self employed, unemployed, and seasonal workers, generally struggle to meet strict requirements to qualify for loans. A loan with few to no documentation requirements is easier to qualify for but generally carries a significantly higher interest rate.[1]

References

  1. ^ No-Doc Mortgages let you pay for privacy - MSN Money



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  • low-doc loan — /loʊ dɒk ˈloʊn/ (say loh dok lohn) noun Colloquial a loan from a lending institution, such as a bank, for which minimal documentation of the borrower s ability to service the loan is required. Compare no doc loan. Also, lo doc loan …  

  • no-doc loan — /noʊ dɒk ˈloʊn/ (say noh dok lohn) noun Colloquial a loan from a lending institution, such as a bank, for which no evidence is required of the borrower s ability to service the loan, other than the borrower s warranty. Compare low doc loan …  

  • Full Doc Loan — is a term that is commonly used in the mortgage industry to refer to a Full Documentation Loan …   Wikipedia

  • low-doc loan — noun A loan or mortgage where the borrower provides only limited proof of their income. Low Doc loans are a flexible solution for self employed people who have income and assets, but are unable to provide the required financial statements or tax… …   Wiktionary

  • Loan-to-value ratio — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower borrows $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

  • Loan modification in the United States — Loan modification, the systematic alteration of contactual mortgage loan agreements, has been practiced in the United States since the 1930s. During the Great Depression loan modification programs took place at the state level in an effort to… …   Wikipedia

  • ninja loan — n. A loan or mortgage given to a person who has no income, no job, and no assets. Also: NINJA loan. [From the phrase, No Income, No Job or Assets.] Example Citations: It s not as though the absurd excesses of the mortgage market were some big… …   New words

  • liar loan — n. A loan or mortgage provided without requiring documentation from the borrower. Example Citations: Last year almost forty per cent of subprime borrowers were able to get liar loans mortgages that borrowers can get simply by stating their income …   New words

  • Full Documentation Loan — In the United States, Full Documentation Loan refers to a loan where all income and assets are documented. It is typically referred to as a full doc loan in the mortgage industry and is a common type of loan used for financing a home purchase. A… …   Wikipedia

  • liar loan — /ˈlaɪə loʊn/ (say luyuh lohn) noun Colloquial → no doc loan. {so called because of the ease with which details, especially regarding income, can be falsified by the applicant} …  

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