Are you struggling to find a good mortgage loan to help you make some home improvements? Are you self employed or struggle to prove your income? If so, then you can use what is known as a no doc loan to get the money you need. Home improvement loans are great for adding value and sometimes you have to go the no doc way, but that is alright if you have no other choice.
A no doc home improvement loan will allow you to get the cash you need to improve your home. You can finish your basement, add new siding, replace your roof, or a number of other things that will add value to your home. Here is what to expect with this type of mortgage.
First, you will need to make sure you really need a no doc home loan. These were designed as programs for the self employed and independent contractors. They also work very well for tipped employees since they rarely claim all their income. If you have had the same job for 2 years or longer and you get a paycheck that is about the same each time, then a no doc loan is not for you.
Second, you should expect your rate and fees to be a bit higher than a normal mortgage. The lender is going to consider you more of a risk because you are not proving income so they will want to balance that out by charging you more in fees and in the interest rate.
Last, always make sure to shop your mortgage around, especially with no doc home improvement loans. There are many different programs and lenders out there so you need to make sure you get the best deal possible. Get quotes from brokers and lenders until you believe you have the loan you are after.