Just as the name implies low-documentation loans require little documentation in comparison to a typical mortgage which requires a great amount of documentation. This mortgage category includes the stated income mortgage loans. This type of non-conventional loan may assist borrowers who are self-employed, or do not wish to disclose their full financial histories. Potential borrowers must keep in mind that higher rates may apply to a low-documentation loan. Please contact a Bank of the Commonwealth Mortgage loan specialist to determine which of these programs would work best for you.

Guidelines for Low-Documentation Loans

• Minimum credit score to qualify is 660
• Bankruptcy and foreclosures must be discharged for 2 years with reestablished credit and judgments must be paid before closing.
• Two months PITI (principal, interest, taxes, and insurance) reserves required
• Five percent minimum down payment from personal funds
• A review of the appraisal