A low-doc home loan is one of the most convenient options when it comes to financing your home. This type of loan requires minimal documentation and income verification, which makes it easier for self-employed individuals and those who aren’t able to provide a lot of supporting documents to qualify.
If you’re self-employed, you can apply for this type of loan through banks or private lenders. But if you’re a property investor, you may have more options because lenders typically offer more competitive interest rates on these loans. The only downside is that investment loans usually require higher down-payments compared with owner-occupied mortgages. However, the amount you need to put down varies depending on your lender so it’s best to shop around for a good deal!
To get approved for one of the loans as an individual borrower (i.e., not an investment property), there are some basic requirements: You must have a good credit score.
why do you need low doc home loans?
As a first home buyer, you might have been struggling to meet the high deposit requirements for a conventional loan. best low doc home loans are one of the best options for first home buyers who have a poor credit history, low income or are self-employed.
Low doc home loans are available for those with an annual income of $80k or less and can offer faster approval times than traditional finance applications. This is because there is no need for extensive documentation from your employer (such as tax returns and pay slips) or your bank account (such as pay slips).
What is the basic criteria for applying for best low doc home loans?
You can find low-doc home loans available from a range of lenders. If you want to apply for a low doc home loan, you will need to meet the following basic criteria:
- You must have a good credit score
- You must have a good employment history
- You must have a good income
- You must have a good asset/asset-to-debt ratio (the amount of money you can borrow compared with the value of all your assets)
What would be the interest rate for low doc home loans?
The interest rate for best low doc home loans Melbourne depends on your credit score, the lender and the size of the loan.
On average, if you have a credit score of 720 or over, then your interest rate could be as low as 2.5%. If your credit score is below 600 then it could reach 5% or higher depending on how much equity you have in the property.
Conclusion
low doc home loans are for those who want to get a new house but don’t have the proof to support their eligibility for a loan. Although, it is not an easy task, but with proper guidance and the right advice it is possible. The key is to look out for reliable lenders and apply early in order to have time on your side.
