What is the difference between Full Doc, Stated, No Ratio, and No Doc?
A Full Doc loan is a loan in which the borrower provides all documentation to establish their credit worthiness. These documentations may include: 30 Days of the most recent pay stubs, last two years of W2’s and tax forms, the most recent 60 days of asset information, the asset information may include your checking, savings and retirement accounts. A Stated loan is one in which the borrower “states” their income. All other documentation is required: including assets verification and employment verification. While the income is not verified, some lending institutions will gage your income based on deposits into your checking account. A No Ratio loan is one in which no income information is stated anywhere on the application. The employment is verified only to the extent that a borrower is employed—but no income is verified. In many cases lending institutions will gage income needed based on historical data of similar positions in the marketplace. A No Doc loan is one in which no employm
