What is a limited documentation refinance and who needs one?

A limited documentation refinance is for homeowners who can't fully document their income through traditional methods — W-2s and tax returns. This includes self-employed borrowers with high write-offs, real estate investors, business owners with retained earnings, or buyers whose income structure doesn't fit conventional underwriting. These loans use bank statements, asset depletion, or DSCR (rental income) to qualify instead. Rates are typically higher than conventional, but access is the point.