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:: No documentation loans ::
Standard home loans require 2 main criteria's to be met in order to obtain approval for a mortgage. The first is sufficient capital or a deposit for the property. The second criteria is a certain level of provable income in order to service the loan repayments. When the second criteria cannot be met, a no documentation home loan may be the answer. That is the loan is based on the assets to back the loan, no level of income justification needs to be proven.
The self employed, who may well be asset rich, often find themselves in the situation where they cannot prove income and hence cannot procure the necessary funds through mainstream lenders. Often funds can be obtained in this situation at rates quite close to the normal standard variable interest rate.
No documentation loans can also be obtained for people with previous credit problems. They are often a solution after the main stream lender has declined to lend the funds.
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