What is a “Low Doc Home Loan? “
A low doc home loan is where less documentation is needed when qualifying for a mortgage.
For example, you might not need
- Tax Returns
- or Proof Of Employment
or documentation about other specifics that underwriters usually ask for.
A lot of the “Low Doc” Mortgage programs went away with the financial crisis in the late 2000’s.
But there are still some options.
“Low Doc” Home Loans For Business Owners
For example, if you own a business, you might be able to qualify for a home loan based on having a consistent history of deposits going into your bank account.
Usually we’re looking for at least 2 years of deposits into your business or personal accounts, but sometimes 1 year of bank statements will work.
There is a bit of a catch with these kinds of low doc “bank statement only” home loans though.
You’ll likely not be able to use ALL of your deposits for qualifying.
In general it’s about 50 -75% of deposits that can be used.
But every situation is different, and the best way to find out where you stand is to use the form below to see if you can get preapproved now.