Full Doc Loans (Less Stringent Guidelines)
In the past, mortgage brokers seldom recommended "Full Doc" loans for self employed borrowers because the difference in rate was minimal and stated loans were much easier to underwrite and close for these clients. As lenders eliminate or reduce the availability of stated programs, guidelines and qualifying factors for full doc loans have become less stringent than in the past. In many cases, self employed borrowers are able to qualify full doc with a lower income than one may think. If an investor's rental properties cash flow or break even and you have a small amount of personal debt (credit cards, car payments, personal loans) you may qualify. The additional benefits to a full doc loan are better rates, less stringent underwriting guidelines, and access to many more lenders.
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