Low documentation loans go by a variety of names:
- Liar Loans
- Low doc
- Lo doc
- No doc
Low Documentation Loan Types
Low documentation loans come in a variety of flavors:
Reasons for Low Documentation Loans
Some borrowers cannot (or don't want to) provide information to a lender. There are a variety of reasons to use a low-documentation loan, such as:
- Self employed people prefer to show lower income for tax purposes
- Young workers have a history of low wages or no wages
- New business owners cannot show a past of consistent earnings
- Privacy needs dictate that you keep your income level to yourself
- Finding and organizing documentation is too difficult
- Your income or assets are not documented in any way acceptable to the lender
Qualifying for Low Documentation Loans
Not just anybody can get a low documentation loan. The lender needs to feel comfortable that you'll repay your loan. You'll need to have good credit. One or more of the following factors will also help:
- High income
- Liquid assets
- Good debt to income ratios
- Small loan to value ratio

