A no documentation equity loan is basically a house loan against your property that will not require any proof of documentation from you. Normally you would provide proof of income documents, job verification documents, have your credit pulled, and there might be some other documentation that they might need, but with a no doc equity loan you don’t worry about any of those documents.
The mortgage company will check your credit and as long as your credit is good enough and you have enough equity, then you will get the loan. This can be a good loan for certain situations, but is not a loan for everybody.
If you are self employed, then a no doc equity loan might be for you. You will not have to prove income, which can be very difficult for some businesses. You will not have to prove your job, which can also be difficult for business owning people. You will, however, have to pay a higher interest rate with this form of a loan and you may not be able to get as much of a loan as if you are able to prove your income and your job.
If you work as an independent contractor, then a no doc equity loan might be for you. Independent contractors often have trouble proving their true income and they can have some trouble proving their job so this type of financing can work wonders for them.
Bartenders, Servers, and all others that have trouble proving their full income can benefit from an equity loan with no documentation. If you get paid on a regular basis and you have worked at your job for a couple of years, then you do not want this type of loan for yourself and your family.
However, those that struggle to prove their real or true income should consider looking into a no documentation equity loan to help them get what they need.