Low Doc Home Loans With Bad Credit

By Angela Monroe - November 14, 2018

Understanding bad credit home loans

Having bad credit can often make getting a home loan more difficult. If you are also looking for a low doc home loan, you may find it even harder. Don’t panic though – it’s still possible to get a low doc home loan with bad credit. Finding the right lender and taking the right steps will help you to achieve a dream that you didn’t previously think was possible.

Find out how we can help you with bad credit home loans.

What is a low doc home loan?

A low doc home loan is for people who struggle to get together the documentation that would normally be required on a traditional home loan. Often these people are self-employed and don’t have the standard proof of income such as payslips, or recent tax returns, that others may be able to offer.

Is a low doc home loan possible?

Yes, it’s certainly possible to get a low doc home loan. Although these often come with high interest rates or additional fees.

If you have bad credit, getting a low doc home loan may be more difficult – especially as lenders are likely to look into your credit score and credit rating. It’s not impossible though and there are lenders out there who understand that there could be different reasons for both your low doc status and your bad credit.

Finding the right lender can really help to make low doc and bad credit home loans possible, so get in touch with us to see how we can help connect you.

Tips for getting low doc and bad credit home loans

Always make sure that your credit rating is the best that it can be. If you’ve just been discharged from bankruptcy, you may need to wait a few months before applying for a low doc home loan.

Try to save up for a large down payment if possible. This will really help when applying for a low doc home loan as it helps to reduce the risk that you pose to the lender. A larger down payment will also reduce the amount of money that you need to borrow on your home loan which further reduces interest and fees overall.

Think about other ways in which you can show your financial responsibility. If you have an understanding lender, they’ll see that your bad credit may not be due to financial mistakes that you’ve made and that your low doc status is simply due to your employment status. Speak to a lender about your financial history and show evidence of fully repaid loans.

What are the risks of a low doc home loan with bad credit?

As with all types of loans, there are risks to low doc home loans, especially for people with bad credit.

You’ll need to be aware of the higher interest rates that you may encounter when applying for a low doc home loan with bad credit. This is due to the higher risk that you pose to the lender. Be wary of extremely high interest rates, as some lenders can take advantage of people in this situation.

Giving a larger down payment can sometimes put people under financial pressure, especially if you already have bad credit. Be careful not to strain yourself financially and only borrow what you can afford.

Factor in that you may have to pay lenders mortgage insurance, as this will need to be accounted for when you budget for your low doc home loan.

How do you get a low doc bad credit home loan?

Ask for help. This is really important and could save you a huge amount of time, stress and money in the long term.

Working with bad credit specialists means that you’ll instantly be in touch with the right lenders for you, so you don’t need to make numerous applications which are then rejected – which could further damage your credit score.

We can help you get a low doc home loan with bad credit. Our years of experience and access to a wide range of lenders will help to ease you through the process and gain better results.

Get in touch with our team for help with bad credit home loans.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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