A full documetation loan is a loan where all income and assets are documented, usually through pay stubs, W-2's, bank statements, or tax returns. This loan type requires full disclosure from the borrower.

It is typically referred to as a "full doc loan" in the mortgage industry and is a common type of loan used for financing a home purchase. This loan type is commonly used, and normally prefered by lenders as they verify all of applicant's assets, sources of income, and employment. This loan requires the most amount of paperwork, but generally provides the lowest interest rates and better loan terms.

Some of the documents that are commonly required when applying for a full documentation loan are:
Proof of Earnings:

• W-2 form
• Recent pay stub
• Tax returns for the past two years

Proof of Earnings (if self-employed):

• Profit and loss statements
• Tax returns for current year and previous two years

Any additional income; for example:

• Social Security
• Overtime bonus
• Commission
• Veteran's Benefits
• Alimony
• Child Support

Asset Verification:

• Address of one's Bank Branch
• Bank account numbers
• Checking and savings account statements for the previous 2-3 months

Debt information:

• Credit card bills for the past few billing periods

Other consumer debt; for example:

• Car Loans
• Furniture Loans
• Student Loans
• Evidence of mortgage and/or rental payments
• Copies of alimony or child support

Information regarding desired purchase:

• Copy of the Purchase Contract
• Cancelled deposit check or escrow letter from company holding escrows

Other types of loans are: No documentation loan, Stated documentation loan, Limited documentation loan