Loans given to borrowers unable or unwilling to give a lender certain information or documentation. A variety of loan types are considered to be low documentation. Not everyone is eligible for this type of loan. The lender must be confident in an entity’s abilities to repay the balance. Typically, those using these loan types are self-employed , showing less income for tax reasons, or workers with no wage history, or business owners with no record of past consistent earnings, or people having difficulty providing lender-acceptable documentation. Also known as liar loans.
Black’s Law Online Dictionary
