We're an entrepreneurial bunch in Australia, with a significant number of workers who are self-employed.

But when you work for yourself, it's not always easy to get home loan finance - and it's possible that things could get even tougher.

The US credit crunch coupled with several official rate rises has put the squeeze on many Australian families battling higher home loan repayments.

And if you have a low doc loan, it's likely that your wallet is even more thinly stretched.

Low doc loans are pitched mainly at self-employed workers who can't provide traditional proof of income like pay slips.

The self-employed often face a more variable, and potentially less secure, income than employees, so low doc loans typically charge a higher rate of interest than standard loans to reflect the greater risk involved.

This means borrowers with a variable rate low doc loan have been hit especially hard by tighter credit conditions and Reserve Bank rate hikes.

A recent report by research group Cannex found that self-employed workers also have an increasingly narrow range of mortgage products to choose from.

Many low doc lenders including Bluestone, Ironbark Mortgage Solutions and Virgin Money have opted out of providing new, residential low doc loans.

In fact, over the last eight months the choice of low doc home loans has shrunk from 180 loans across 47 providers down to 153 products across 38 providers.

This is still a reasonable selection of mortgages, but it does highlight the need to choose a low doc loan with care.

If you want to refinance further down the track you could find the range of available options has downsized even further.

If you're in the market for a low doc mortgage, it's worth looking beyond the headline interest rate.

The fees and charges involved can be high, especially exit fees that apply if you pull up stumps in the first few years.

That said, you can still get a reasonable deal on a low doc loan if you shop around, with many rates in the 9% to 10% range.

Cannex recently compiled a star rating report for low doc loans, and it's clear that some of these loans charge rates only slightly above traditional 'full doc' mortgages.

Do pay attention to establishment and early payout fees though.

If you do use a low doc loan, I thoroughly recommend taking out income protection insurance.

In a recent survey by mortgage insurer Genworth, 38% of respondents cited illness as a key cause of difficulty meeting home loan repayments.

Working for yourself is the great Australian dream, but without sick leave or holiday pay to fall back on, it could turn into a real nightmare if you can't work due to illness or injury.