low documentation loan

Loans provided to borrowers who cannot provide certain information or documentation to a lender. In some cases, the borrower does not want to divulge some of the information. There are a variety of loan types considered to be low documentation. Typically those who borrow these types of loans are self employed and showing less income for tax reasons, workers with no wage history, business owners with no record of past consistent earnings, or those who have difficulty otherwise providing documentation acceptable to the lender's requirements. Not all are eligible for this type of loan unless the lender is confident in their abilities to repay the balance. Also called liar loans.