No-Doc Mortgages: Are They Still Available?

A no-doc mortgage, also known as a no-income verification mortgage, allows you to get a home loan without having to prove how much you make through a pay stub or W-2. A no-doc mortgage can be a good fit for people with nontraditional income sources, such as self-employed borrowers or real estate investors.

However, today’s no-doc mortgages are much different from those in the past. Here’s what you need to know before searching for a no-doc loan in today’s market.

Key takeaways

1. No-doc loans let you get a mortgage without proving your income through traditional sources like pay stubs or W-2s.
2. Today’s no-doc loans are quite different from those offered during the 2007-2008 financial crisis.
3. No-doc and low-doc loans can be a good fit for self-employed borrowers or real estate investors.

What is a no-doc mortgage?

Short for “no-documentation loan,” a no-doc mortgage is a home loan that doesn’t require the mortgage lender to document how much you earn through pay stubs or W-2s. Instead, the mortgage loan amount for which you’re approved is based on your own estimate of your income and assets.

No-doc mortgages have always been something of a specialty mortgage product. They were originally designed to help self-employed borrowers afford homes, but a lack of regulation and broad misuse of these loans contributed significantly to the 2007-2008 housing market crash.

Since the crash, tightened regulations have made it more difficult for the average homebuyer to access a true no-documentation mortgage.

“You can still do a no-doc loan … but it would have to be on a rental property for an investor, and it would be (closer to a) hard money loan (than the no-doc loans from the past), ” says Todd Huettner, president of Huettner Capital in Denver.

However, Huettner adds that there are still modern options available for homebuyers who need more flexibility with the paperwork they provide, even if true no-doc loans are hard to come by in today’s market.

How no-doc mortgages work

Traditionally, qualifying for a no-doc mortgage was an exercise in integrity. Borrowers provided a stated estimate of their income and assets to the lender, who then used that information, along with minimal underwriting, to determine how much they could qualify for in a loan.

“Basically, they pulled your credit and gave you money,” explains Huettner.

However, that is no longer the case. After the 2007-2008 housing crisis, new regulations were put in place by government agencies, including the Consumer Financial Protection Bureau (CFPB). Under the CFPB’s Ability to Repay Rule, mortgage lenders must gather documentation to make a reasonable determination that you can repay your loan.

Today’s alternatives to the traditional no-doc loan still provide borrowers with the money they need to purchase a home. Known as nonqualifying mortgages, they require paperwork different from conventional loans and other types of mortgages.

“You may use 12-24 months of bank statements as an alternate documentation method,” says Huettner. “(Nonqualifying mortgages are) still allowed, but they come with a little bit of a higher rate and more risk for the lender.”

Once you’re approved for a no-doc mortgage, it will function like a standard mortgage loan, meaning you’ll repay the amount you’ve borrowed, plus interest, over a set period of time.

Types of no-doc mortgages

Here are some common types of no-doc mortgage loans:

• Stated-income loans: Stated-income mortgages don’t use a W-2, Form 1099, bank statement or other source to verify the applicant’s income.
• SISA: Stated-income, stated-asset (SISA) loans are made without verification of a borrower’s income or assets. These are now available only for investment-property purchases.
• SIVA: With stated-income, verified-asset (SIVA) loans, lenders accept your assets and your word about how much you earn as the basis for approval. They’re often called bank statement loans, as the lender verifies financial information by reviewing six to 24 months of bank statements.
• NIVA: No-income, verified-assets (NIVA) loans are similar to SIVA loans, except income is not added to the application. Instead, lenders may review assets such as retirement and savings accounts.
• NINA: No-income-no-asset (NINA) loans may be an option for real estate investors buying multiple rental properties. This type of no-doc mortgage requires enough rental income to cover the new mortgage payment.
• NINJA loans: No-income, no-job, no-asset (NINJA) mortgages don’t require lenders to verify income, assets or employment. Essentially, with a NINJA loan, the lender takes the borrower’s word that the loan application is accurate.

Who qualifies for a no-doc mortgage?

Qualifying for a no-doc loan in 2025 is much more difficult than it used to be. These days, you generally have to be a real estate investor or a high-net-worth individual.

Typically, you need to have the following to be considered for one of these loans:

• Significant income
• Significant assets
• Enough savings for a higher-than-usual down payment
• A strong credit score

Who are no-doc loans meant for?

Andy McDonald Vice President of Sales, LendingTree

“Today’s no-doc loans are not the same as in the past. These days, they offer borrowers with financial profiles that don’t fit the norm the option to purchase a home. For example, a no-doc loan may be a good fit for a self-employed borrower who may have difficulty showing a W-2 but can provide a bank statement, or a real estate investor who wants to flip homes using a DSCR (debt-service coverage ratio) loan.”

No-doc mortgage requirements vs. other types of mortgages

Before applying for a no-doc mortgage, see if you meet the minimum mortgage requirements

for the most common standard mortgage programs. Borrowers often choose conventional

or FHA loans (backed by the Federal Housing Administration) because of their low down payment requirements.

Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. FHA loans are more lenient than conventional loans. No-doc mortgages typically require higher down payments and credit scores than conventional and FHA loans.

The table below gives you a side-by-side comparison of standard requirements for each loan type.

Should I get a no-doc mortgage?

You may want to consider a no-income-verification loan in the following scenarios:

• You have an irregular income. Self-employed borrowers and seasonal contractors may receive lump sums of money a few times a year. A no-documentation mortgage lender may be able to help if a traditional lender can’t determine your income.
• You’re a real estate investor. Ability-to-repay rules apply only to mortgages for primary residences and second homes. Investors might qualify for a no-doc home loan program on the basis of projected rent for the property they’re buying without providing any other asset or income documentation.
• You have a high net worth but no job. If working is no longer necessary because you have enough money to live on, a no-doc mortgage loan may allow you to convert your assets into qualifying income.

Pros and cons of a no-doc mortgage

Alternatives to no-doc mortgage loans

While many of the no-doc loans of the past are no longer available, some mortgage lenders may offer different no-doc and low-doc mortgage products today. Below is a breakdown of the most common programs and who can benefit from them.

Bank statement mortgages

Lenders collect and review the deposits on 12 to 24 months’ worth of your personal or business bank statements to calculate your qualifying income for a loan.

Who they’re best for: Consumers who receive deposits on a regular basis that can be easily tracked on their bank statements.

Asset-based mortgages

Often called asset-depletion loans, these loans are secured by an asset that can easily be made liquid if needed, such as an investment or retirement account. The total value of the asset is divided by the term of the loan to estimate the qualifying income.

For example, a borrower with a $1 million retirement account could apply for a 20-year fixed asset-based loan. The qualifying income would be $50,000 per year ($1 million divided by a 20-year term).

Who they’re best for: High-net-worth borrowers with funds in accounts that can be easily converted to cash are typically a good match for asset-based mortgages. Institutional banks may offer these mortgages to customers with large deposit balances.

Debt service coverage ratio (DSCR) loans

Debt service coverage ratio (DSCR) loans are available only if you buy an investment property that produces enough income to cover the monthly mortgage payment. The lenders don’t require income or asset documents if the property’s monthly rents are the same as or slightly higher than the total monthly payment.

Who they’re best for: Real estate investors with cash for high down payments who want to quickly build a portfolio of investment properties.

Where to get a no-doc mortgage today?

No-doc mortgages may have changed over the years, but they’re still available in some form. However, the term “no-doc” is somewhat stigmatized, so you may not have much luck searching for a “no-doc” loan.

For residential borrowers, today’s low-doc loans — such as bank statements and asset-based loans — fall under the broader category of nonqualifying mortgages. You’ll have better luck looking for lenders that advertise those products.

Real estate investors should look for lenders offering DSCR loans. Since these loans use the anticipated rental value of the property to qualify you, they could be a viable option for your research.