Definitions for "No-doc Loan"
A "no-documentation" loan, streamlining the mortgage approval process, is sometimes available to borrowers with very large down payments of 40% or more.
No verification required for: income, assets, or employment. No stated income, IRS forms, or qualification ratios.
A loan requiring very little loan documentation. The borrower generally puts down a sizable down payment, usually at least 25%. These loans tend to be more common among self-employed people (those who have enough for the down payment) whose tax returns might indicate earnings substantially less than what would otherwise be acceptable to the lender.