No doc loan

From Wikipedia, the free encyclopedia

A No-Doc or Low-doc loan (abbr: No/Low Documentation Loan) refers to a finance product commonly offered by a mortgage lender to consumers who cannot qualify for normal loan products or do not wish to give up their financial privacy.

Self employed, unemployed, and seasonal workers, generally struggle to meet strict requirements to qualify for loans. A loan with few to no documentation requirements is easier to qualify for but generally carries a significantly higher interest rate. No doc loans can also be appealing to those living a life of crime because of the lack of documentation.^[1]