Low Doc Loans – Solution for the Self-Employed

To get a loan you will need to do tonnes of paperwork, such filing your tax returns, personal statements for your accounts, subscription to your credit cards and other annoying stuff. When you notice that the mortgage broker or the lender gives everything he has to get you the best deal on your mortgage you can notice that things are not going as they should. One common problem to a lot of people is that they cannot acquire the right documents. However, there is a solution for them that is appealing and reasonable and available with almost any documentation.

Low Doc Loans

The best solution for this kind of problem is getting low doc loans. Low doc loans are most suitable for those who are self-employed and show lower income due to the fact that they want to pay lower taxes. Nevertheless, this can backfire when applying for normal loans. For the younger self-employed people who have no wage history and minimal wages, also for the new business owners who do not posses history of consistent earning, managing and finding the right documentation to apply for low doc loans is very difficult, maybe even not existent.

Unfortunately for a lot of people the days when they can easily get the documentation because the world economic crisis in 2008, the loan market has been changed forever. Before it was way easier, you needed only told your loaner or mortgage broker how much money you earn without doing any thorough checks and getting the loan. Since then, things are not so easy, stated income is not so easily available and only some lenders are willing to work for the mortgaged property.

Generally, most banks are not looking back to the last decade, because they are not interested in giving away subprime loans with the wrong numbers. Nevertheless, they want to work with people who will provide proof that they have the ability to pay off their loans, even though they are lacking some of the documentation to prove the assets and income they own. Bellow, we will go through some of the main characteristics that will help your application of getting low doc loans.


Having a decent credit rating will be less bothersome when supplying the loaner with documentation. If every document you have is good, there will be nearly nothing that can stop you getting the deal. Lenders will see a lower risk when they see your credit rating. Nevertheless, you should keep in mind when you pay bigger amounts for your monthly payment, the chances to have an improved chance of getting low doc loans is better.

Income And Assets

Having some extra money on your save account and a regular income will always be beneficial. When you have your investment accounts at your disposal you will have a steady payment every month. Additionally, if you prove to your broker or lender, even if you do not give all the documentations, you have a great chance to get your loan approved.


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