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In the United States, full documentation loan refers to a loan where all income and assets are documented. [1] It is typically referred to as a "full doc" loan in the mortgage industry and is a common type of loan used for financing a home purchase.
Key takeaways. A no-doc mortgage offers a way to get a home loan without some of the income and employment verification paperwork lenders traditionally require, like W-2s and pay stubs.
FHA loan: Insured by the Federal Housing Administration, FHA loans allow you to buy a home with a minimum credit score of 580 and as little as 3.5 percent down, or a credit score as low as 500 ...
A VA loan certificate of eligibility provides documentation that you meet the service requirements to apply for a VA home loan. Lenders are required to obtain proof of eligibility during the loan ...
"It required no documentation of a borrower's income or assets and gave loans to borrowers who debt-to-income levels were far higher - 50% - than what was required by other lenders." [ 14 ] During 2005 68% of “option ARM” loans originated by Countrywide and Washington Mutual had low- or no-documentation requirements.
Low-doc loans carry a higher interest rate and were theoretically available only to borrowers with excellent credit and additional income that may be hard to document (e.g. self-employment income). As of July 2010, no-doc loans were reportedly still being offered, but more selectively and with high down payment requirements (e.g., 40%). [4]
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