Most think that no doc loans are basically signature loans, but that just is not true. A signature loan is one that is typically for a smaller amount and is called a payday loan or a cash advance most of the time. The do not check credit or verify much other than your income and your checking account. No do loans are much different than that and here is why.
You can use a no doc type of loan for a car, a mortgage, or a number of other things. Most of the time they are mortgages and the lender will check your credit. In fact they will probably require a higher credit score just to get you qualified. These loans have great benefits though and if you are in the right situation they can be very helpful for you.
First, if you are a self employed individual, then these no doc programs were designed for you. Self employed people have a lot of trouble proving what they actually make because many items that we would consider personal property have a dual use as business property as well. This makes the payments for them and the maintenance tax deductible and cuts down your income.
Second, if you are a tipped employee, then you know you do not claim all of your income and no doc loans are probably your only shot. Tipped employees, like bartenders, servers, and other types never claim the full amount of their tips. This means that they end up with a larger income than they can prove and if they could prove it they would probably qualify for a better loan, but since they cannot the no doc loans work out perfectly for them.
No Doc Equity Loan with No Income Verification/