If you're self-employed or have multiple sources of unorganized income, you may find it overwhelmingly difficult to convince banking institutions and scores of other online lenders that you're indeed an eligible loan applicant. Even if someone knows you're financially stable and in a position to pay back a loan amount on time in full, they'd still want you to reduce paper records!
You want fast cash and you can pay back the loan on time. But, nobody is prepared to loan you money! The problem is, banks and other lenders want you to produce solid proofs of income sources, savings, expenses etc. and it's not always possible. So, a bank may not be prepared to loan you 50,000 bucks to buy a home when you can actually afford to buy a home worth 300,000 dollars! That's when low doc home loans come handy!
The solution to the problem stated above is pretty simple - self declare the income and apply for a low doc loan right away! Yes, it's that easy and it doesn't take much time either. You can have a bank statement or accountant's letter support your self-declaration of income. It's fairly easy to arrange for either of the two, isn't it?
You can save yourself from the trouble of arranging for tax returns and other financial records in order to arrange financing. Low doc home loans are approved very quickly and within no time, you can close a deal without any headache at all!
Nowadays, even specialized low doc loans are available for applicants who do not happen to have a perfect credit history. Others willing to build new dwellings or extend existing ones too can avail the benefits of home loans that require low documentation.
What does it take to get fast cash with a low doc loan?
In a nutshell, you need to be a self-employed person (freelancer or own business, for example) in order to be in a position to self-declare your income. You need to have an active ABN too. You'd to submit either of the following to support the income figure declared by you:
1. Accountant's Letter
2. Business Banking Statement
Low doc loans are as good as other loan schemes
Just because low documentation home loans are approved easily and involve little or no hassles at all does not imply they are less useful/flexible as compared to traditional loan schemes. These loans can be used for all kinds of residential/commercial property transfers or purchases. Whether you're an individual or a business organization looking to buy or refinance a property, you can avail Low Doc Loans without having to worry about lengthy paper work and ambiguous approval procedures.