How to Find Mortgage Loans that Need Less Paperwork

One of the biggest problems with mortgage loans is that they typically require you to fill out a great deal of paperwork. However, there are some mortgage loans out there that streamline their process. If you are shopping around, you should be able to locate this type of loan by asking for a low doc loan program. You can also search online for low doc home loans and many different lenders will be available for you to work with.

Low Doc Loans

Low doc loans require less documentation than a traditional mortgage does. They may also require less verification documents, such as pay stubs, bank statements and tax returns. Many of these types of programs will have higher rates or fees because the lender associated with them takes on higher risk.  Many times, the rate can increase up to 2 points. For example, a regular FHA loan may offer an interest rate of 6 percent, a low doc loan may offer a rate of 8 percent.

These types of loans were once popular, but after the recent mortgage crisis, it is difficult to find them. Many lenders got into trouble using this type of program because borrowers were not being properly qualified to take on high mortgages.