Next week, we will take three days to look at no-doc mortgage loans. Today, I will provide a brief overview of what no-doc mortgage loans are, and then next week we can look at the three main types of no-doc mortgage loans. These are popular among many people who work from home.

What are no-doc mortgage loans?

"No-doc" stands for "no documentation." These types of mortgage loans require much less — and sometimes really no — documentation for you to get a home loan. Normally you have to bring in all sorts of documentation to "prove" that you can pay for a home loan. With a no-doc loan, some sort of statement of income, and a credit score check, is usually all that is needed.

But you will pay the price for no-doc mortgage loans. Higher interest rates are often charged (since less documentation presents a greater risk to the lender) and you might find yourself paying more up front for a down payment or even for a faster credit fix. The three main types of no-doc mortgage loans are stated-income, NINA and no-ratio. We’ll devote a day to each of these next week.

Tags: home loan, personal finance, financial planning, finances,
financial goals, no-doc mortgage loans, work from home, mortgage loans