What does Low-Documentation Loan mean?

A low-documentation loan is a type of loan that does not require the borrower to provide as much documentation as is typically required for traditional loans. These types of loans are often used by self-employed individuals or those with poor credit who may have trouble providing the required documentation.

Related Terms

Federal Home Loan Mortgage Corporation, Law Reverse Mortgage Contemporary Style Mortgage Ranch Style Standard Metropolitan Statistical Area Repayment Plan Early Occupancy Credit Union Turnkey Facade Prepayment Penalty U.S. Department. of Housing and Urban Development (HUD) Loft Accessibility Contiguous Lots Cap Rate Building Moratorium