No Doc Loan

A No Doc Loan is a home loan that does not require any income or asset documentation from the borrower. The loan approval is based solely on the borrower’s credit score and the value of the property being purchased. No Doc Loans are typically used by self-employed individuals or those with irregular income who have difficulty providing sufficient documentation to qualify for a traditional loan. These loans are considered high-risk due to the lack of income documentation and contributed to the 2008 financial crisis. As a result, No Doc Loans are now more prevalent than they once were and may be harder to find. They may have higher interest rates and stricter qualifications than traditional loans if available due to their higher-risk nature.