Lo/No Doc Loans - Residential

[Iggy_Type_R]

Can someone please explain to me how these work?

I tried doing a search, but it's hard when the min search string lengh is 4 characters! :confused:

[Rolf Latham]

Hiya

Basically the lender accepts your word for it as to what you earn, by you signing a declaration.

Generally proof of income is not required.

Rates and fees tend to be a little higher that normal loans for the increased risk.

Reasonably, loan to valuation ratios go to 80 %, while there are products that go to 90 the rates are huuuge.

Ta

Rolf

[geoffw]

Iggy

Here's a couple of links to give you a bit of an idea about what it's all about.

http://www.mortgagehouse.com.au/blemished.asp
http://www.pacificmortgage.com.au/NonConformingLoans.html
http://www.libertyfinancial.com.au/mediafiles/media020100a.asp

They give a good idea of how they work- but of course, being the people who sell the products, give only the good side of the story.