Does a No Doc Mortgage Loan Really Exist?

If you need a home mortgage, but you want to maintain financial privacy, a no doc mortgage loan may be your best option. With a no doc mortgage loan, you don't have to submit nearly as much required documentation as with a regular home loan.

Documents You Must Show

Even though no doc mortgage holders must divulge less private financial information, such as tax returns or income statements, they must undergo a credit check and a property appraisal at a minimum. Generally, lenders will only offer a no doc mortgage loan if the applicant has excellent credit.

Types of No Doc/Low Doc Mortgages

There are two main types of low doc mortgage loans, and one type of no doc mortgage loan. Choose the one that is right for you.

  • No-Ratio Loan - This low-doc mortgage is generally reserved for wealthy individuals who live off of investments and/or have complicated finances (e.g. recently divorced or recently unemployed persons).
  • Stated-Income Mortgage - This low-doc mortgage is for the self-employed or any worker who does not receive a regular paycheck from an employer.
  • No-Doc/NINA (No Income, No Asset verification) - This is the most private mortgage and is reserved for people with excellent credit who wish to fully protect their financial privacy.

Privacy Costs

Financial privacy sounds great; however, it comes at a cost. A no doc mortgage loan carries a much higher interest rate than traditional loans. With the added privacy and flexibility of a no doc loan, most lenders require a significant down payment. Speak with your lender about no doc mortgages to find out if it is the best option for you.