What is a "Full Doc" Loan?
By Kirk Mulhearn
(Prudential California Realty/Gem Mortgage)
Long Beach, Ca. What is a "Full Doc" Loan? In the last two years we have seen an evaporation of almost all "stated income" loans. These loans enabled home buyers to purchase properties without disclosing their actual incomes. Partly, because of these types of loans, the sub-prime loan melt down was conceived, born, and died, throwing the financial markets into a tailspin. As a reaction to the housing collapse, the pendulum has completely swung to the other the opposite side of the banking world. This means that in the current market, you now have to prove income in order to purchase a home and qualify for a mortgage. In the lending business, we call these, "Full Doc" loans, short for, "full documentation," loans. Historically, banks like to see the following items to document y...