In today’s environment it is difficult but not impossible to obtain a No Doc loan with bad credit.
These lenders work on a risk for rate basis. A No Doc loan is considered a high risk and therefore attracts amongst the highest interest rates. If you find yourself in this situation rate can not be the most important feature of your loan.
As the name No Doc implies, the lender will require limit paper work regarding income. Generally they require a letter from your accountant stating you can afford the loan repayments.
You will also require a larger equity in the property. These loans have a maximum of 70% of the value of the home but this would be subject to conditions. The main condition will be a satisfactory security being offered. So by this we mean the property offered must be in a good location and in good condition therefore easily saleable.
If we obtain an approval for this type of loan it should be considered a last chance and all repayments must be made on time.