• Popular with self-employed people, these loans require less documentation or proof of income than most, but often carry higher interest rates or require a larger deposit because of the perceived higher lender risk. In most cases you will be financially better off getting together full documentation for another type of loan. But if this isn’t possible, a low doc loan may be your best opportunity to borrow money.

    Pros

    Lower requirement for evidence of income. May overlook non-existent or poor credit rating.

    Cons

    You will probably pay higher interest than with other home loan types, or may need a larger deposit, or both.

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