Understanding Loan Documentation Types
| Documentation Type |
Why Choose This Loan Type? |
Interest Rate Impact |
Amount Financed |
| Full Document |
Good Credit
Can document income & assets
Best rates
Requires verified employment |
With good credit – the best interest rates and the most choice of programs* |
Up to 100% depending on credit, property type and loan program. |
| Stated Income |
Less hassle for borrowers with complicated income/self employed
Can’t document all income, i.e. receives income in cash
Requires verified employment |
Very few
programs available
Higher rates than full document |
Up to 90% depending on credit and property type |
No Income/
No Assets |
High consumer debts, couldn’t meet required debt ratio
Requires verified employment |
No longer available |
Not Applicable |
| No Document |
One spouse may have great credit but doesn’t work and the other spouse has major credit problems
No verification of employment |
No longer available |
Not Applicable |
Programs may include options such as 30 or 15 year fixed rate,
Adjustable Rate Mortgages, Interest Only Mortgages, Payment Option Mortgages.
