🏡 What Is a No-Doc Loan?

If you’ve been exploring home financing options and stumbled across the term “No-Doc Loan,” you’re not alone. In a world where traditional mortgage lending often requires stacks of paperwork, a no-doc loan offers a simplified path—especially for buyers with non-traditional income.

But what exactly is a no-doc loan, and who is it right for? Let’s break it down.

💡 What Is a No-Doc Loan?

A No-Doc Loan (short for No Documentation Loan) is a type of mortgage that requires little to no verification of a borrower’s income, employment, or assets. Instead of paperwork, lenders primarily evaluate:

• Your credit score
• The value of the property
• The down payment amount

These loans were once popular in the early 2000s, but after the 2008 housing crisis, they became much more regulated. Today, no-doc loans (and their cousins—low-doc and alternative-doc loans) are still available, especially through private lenders and non-qualified mortgage (Non-QM) programs.

🧾 Overview of No-Doc Loan Types

Even though the term “no-doc” is often used generally, there are several variations. Here are some of the most common types:

🔹 1. NINA (No Income, No Asset) Loan

• You don’t have to show proof of income or assets.
• Approval is based on credit score and collateral.
• Rare today—used only in very specific private lending cases.

🔹 2. SISA (Stated Income, Stated Asset) Loan

• You state your income and assets, but they’re not verified.
• Still used by some lenders for self-employed or commission-based borrowers.

🔹 3. SIVA (Stated Income, Verified Asset) Loan

• Income is stated, but your assets must be verified.
• Good option for buyers with significant savings or investments.

🔹 4. NIVA (No Income, Verified Asset) Loan

• No income documentation required.
• Assets like retirement funds, stocks, or savings accounts are verified.

🔹 5. Bank Statement Loan

• You provide 12–24 months of bank statements to show cash flow.
• Popular among freelancers and self-employed individuals.

🔹 6. Asset Depletion Loan

• Lenders use your total liquid assets and divide them over a set period to calculate “income.”
• Ideal for retirees or high-net-worth individuals.

🔹 7. DSCR Loan (Debt Service Coverage Ratio)

• Specifically for real estate investors.
• Qualification is based on rental income from the property—not your personal income.

🏠 What Type of Mortgage Is Right for You?

There’s no one-size-fits-all in today’s real estate market. The best loan type depends on your unique situation, including:

• Employment type
• Credit score
• Available down payment
• Financial documentation

If you’re self-employed, retired, investing, or have high net worth with low reportable income, a no-doc or low-doc loan could be the perfect fit. However, these often come with higher interest rates and larger down payment requirements, so it’s important to weigh the trade-offs.

🌟 We’re Here to Help—Wherever You Are in the Journey

At Preferred Properties of Texas, our experienced agents have been helping buyers and sellers navigate changing markets for over 30 years.

Located in Stephenville, we proudly serve not only Erath County, but also Hood, Hamilton, Bosque, and surrounding areas. We believe that with the right strategy, you can move forward—even in a market like this.

✅ First-time buyer?
✅ Want to invest in land?
✅ Stuck in your current home and unsure what to do next?

Let’s talk about your options.

📞 Call us today at 254-965-7775
🌐 Visit preferredpropertiestx.com
📲 Use our Down Payment Calculator to get a head start

Don’t wait for perfect conditions—create them.
With the right strategy and support, today’s challenges could become tomorrow’s opportunity.
Let us help you take the next step.

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