DEFINITION of 'Alternative Documentation'

A documentation process designed to expedite loan approval where the lender accepts from the borrower documents such as W-2s, paycheck stubs and bank statements as verification of income made on the loan application. Confirming a borrower's information in this manner is considerably quicker than the traditional method of verifying such information with third parties.

BREAKING DOWN 'Alternative Documentation'

Alternative documentation is a "full documentation" loan. In other words, income, assets, employment, etc, are documented as opposed to a "stated income stated asset" (SISA) loan. There is generally no increase in the interest rate associated with alternative documentation as there typically is with "stated" loans.

  1. Origination

    Origination is the process of creating a home loan or mortgage.
  2. Questioned Document Investigation

    An in-depth look into a document which is being questioned in ...
  3. Mortgage Application

    A document submitted by one or more individuals applying to borrow ...
  4. Standing Loan

    A type of loan where payments are made of interest only. Repayment ...
  5. Liar Loan

    The approval of a mortgage with little or no documentation to ...
  6. Whole Loan

    A whole loan is a single loan that a lender has issued to a borrower. ...
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