Resolve Debt

In today’s financial market, no doc loans, that is loans where lenders do not require any documentation revealing your employment, income or financial wealth, are very difficult to acquire. Most mortgage companies are not offering no doc loans right now because of the heightened financial risk to lenders.

Interest rates, which loan buyers usually attempt to secure as low as possible, are often tripled when under contract for a no doc loan. However, if your employment history privacy is more important to you (than high interest rates) a no doc loan would be an advisable choice.

A no doc loan would be an appropriate loan for someone who came into a lot of money all at once, from an inheritance or life insurance payment, where the loan buyer invests the lump sum into a possible venture but needs a little more capitol to fulfill the purchase. Since the majority of the financing is already there, the lender would not be at risk, so the no doc loan would then benefit both the lender and borrower.

A no doc home equity loan would be an excellent alternative for someone who was expecting to retire and begin living on a pension, while also working under the table and owned their home out right. The extra income from the untaxed occupation would pay for the loan, which the borrower could use to purchase more property, do renovations on the existing home, for the purchase of a new vehicle, college fund for a relative, etc. Without revealing the untaxed income, the borrower could then use it pay off the no doc loan and actually make money on the venture.

Buyers, who prefer not to reveal the specifics of financial history to the lender, are most likely to choose a no doc loan. In this market, it is easy to imagine many legitimate occupations – a real-estate agent, for example – who has a fluctuating income and wishes to keep that information private.

Some institutions claim no doc loans make borrowing simpler because the borrower provides only their social security number, and the remaining information regards only that of the property that is being purchased.

In this fast paced world of modern technology and instant information, privacy is quickly becoming a glimmer in the past, and it makes sense to protect ones history as much as possible. However, lenders are knowledgeable about the financial market, and know the fragility of it will only allow a few no doc loans out of their institution.