How to Get a Low Doc Loan
What it is
| At a Glance | |
|---|---|
| Loan Type: | Business |
| Lender: | Bank |
| Secured: | Yes |
A low doc loan is a flexible solution for a self-employed individual who is looking for a loan, but who may be unable to provide a financial institution with proper documentation at the time of the loan application. Individuals who will qualify for a low doc loan have income and assets, but may not have financial statements or tax returns readily available. Instead of requiring proof of income, an applicant will be asked to fill out an income declaration form along with a standard loan application.
With low doc loans, applicants can choose between many different types of loans, including lines of credit and one-, two-, three-, and five-year fixed loans, as well as business loans and non-business loans. There is a minimum loan amount of $100,000. The loan-to-value ratio is 60 percent for all small business loans, 80 percent for all term home loans, and 75 percent of all asset lines of credit.
Who it's for
Many small businesses find themselves in need of a business loan at one time or another, for a variety of reasons, and a low doc loan can be very convenient. They are available for investment and owner occupied home loans and loans specifically designed to meet the needs of a small business. People who are self-employed or own small businesses and do not have financial documentation readily available prefer low doc loans.
What you need to do to apply
To apply for a low doc loan, a business owner only needs to meet with a financial professional. The only documentation required is an application form and an income declaration form. The lender will take care of the rest by walking an applicant through the process and answering any questions.
Apply for a Low Doc Loan
Click here to apply for a business loan at PlanetLoan: