If I have bad credit, can I take a no documentation mortgage loan?
Answer:Usually, a no documentation mortgage loan requires that you have a high credit score which serves the lender as an index to how trustworthy you are in handling your finances. No documentation mortgage loans are considered quite risky by lenders and the credit score is their single basis for trust.
Though, there may be lenders specialized in offering no documentation mortgage loans to bad credit customers. No doc (or low doc) mortgage loans for bad credit customers may carry significantly higher rates compared to no doc loans for good credit borrowers. No documentation mortgage loans with bad credit carry significant risk to both lender and customer and it may be advisable that you refrain from getting into debt if you want to go no doc and have bad credit. Perhaps, it will be better to wait until your score gets better or your finances stabilize.
Unless you are an experienced investor and you know what you are doing, no documentation mortgage loans can be a risk to bad credit borrowers.
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