Question: What is a No Doc Loan? Answer: A No Doc is a loan that does not require the typical documentation needed by "Full Doc or Reduced Doc" loan programs. Those programs require full or partial disclosure of income, employment, assets (cash in the bank) to name a few.
Question: What Will Not Be Verified? Answer: A true "No Doc" program will not verify the following: 1) Employment 2) Income 3) Assets (cash in the bank)
Question: What Documentation would be required? Answer: No Doc programs will require the following: 1) Minimum Fico Requirement starting at 700 2) Mortgage or Rental History for 12 Months. 3) Minimum Credit Tradelines of 3 accounts reporting with 24 months on-time payments. 4) Full Appraisal 5) Title Commitment 6) Hazard Insurance (For SFR's) or Condo Warranty (for Condo's)
Question: What Kind of Properties Types Are Available? Answer: Typically No Doc programs are available on Single Family Residences (SFR), Townhomes and Condominiums only. They are not currently available on Mobile homes, Manufactured Housing, Raw Land or Commercial properties.
Question: I am Self Employed and I have been told I have to do a no documentation loan? Answer: Not necessarily. Being self employed used to be a problem when obtaining a mortgage. There are programs such as "Lite-Doc" or "Alt-A" that are geared towards self employed borrowers.
