No-documentation home loans or no doc home loans are similar
to low doc home loans. Only a bare minimum paper work is required
to obtain this type of loan. Self verified income is accepted
by lenders and usually a loan up to 60% of the value of the
property can be obtained.
As the risk for the lenders is much higher when approving
no doc home loans, the interest rates are higher as well.
Mortgage insurance is another cost borrowers should consider
when applying for this loan.
If all loan repayments are made on time for a couple of years,
it is possible to refinance with lower interest rates.
Now for No Doc Loans