Definitions for "NO-DOCUMENTATION LOAN"
A mortgage in which the applicant provides only the minimum information - name, address and Social Security number. The underwriter decides on the loan based only on the applicant's credit history, the appraised value of the house and size of down payment. This type of loan usually has higher interest rates than a standard loan.
Loan application where verification of income is not required and is typically granted in cases of large down payments.
A loan that does not require the applicant to provide much personal information. The applicant usually provides their name, address, Social Insurance Number (to pull credit reports), and contact information for an employer, if applicable. The underwriter simply approves or denies the loan based on the applicant's credit history, the appraised value of the property, and the amount of down payment. A large down payment is usually required for this type of loan.