A no doc mortgage
loan can be defined as a specialized mortgage loan. This is one where mortgage
lender does not look at things such as whether you are employed or not. The
lender does not check how much you earn in a month or what property you own.
Normally in a regular mortgage loan these things are always checked. The only
thing that these lenders are bothered about is your credit record. They also
look at the worth of the property that they are financing. This is perhaps why to
get
no documentation loans have become so popular these days.
With the no doc
mortgage loans the risks of foreclosure are always higher and this is why these
are the two things that the lender looks at while giving you the loan. You
would also see that because of the levels of risk associated with these loans
the rate of interest charged on their repayment is always higher than that of
the regular mortgage loans. These loans are available in fixed rates as well as
floating rates. Normally when you try to take a no documentation home loan the
lender would ask for some down payment. It is normally around 5 per cent of the
amount being loaned.
In case of the
adjustable rate versions lenders would ask for even higher down payments. These
loans normally have credit guidelines that are stricter than normal. This
happens because the loan is being provided just on the basis of your credit
record and the value of the property against which said loan is being taken.
These days, people with credit problems can take mortgage
refinance with bad credit as well. Before you take one such loan you
should remember the simple fact that you are going to pay a higher rate of
interest than normal mortgage loans.
One of the major
advantages of these loans is that even if you have income and asset-related
problems and even in case you are unemployed you can get financial assistance
against the value of your property. For more information on no doc home loans
please visit MortgageRefinanceBadCredit.com
