Philip Spears/Getty Images. Illustrations by Austin Coule Certification/Bankrate
What is a No-Doc mortgage?
A short for “no document,” Nordok mortgages are a type of mortgages that lenders do not need to document how much they earn on wage stubs and W-2s.
If your income is irregular, or if you don’t have access to standard documents needed to get mortgage approval, such as wage stubs or tax returns, you may consider a Nordok mortgage.
How does a No-Doc mortgage work?
The main difference between NO-DOC mortgages and traditional mortgages is the required documentation.
Historically, non-DOC mortgages have been operated under an honorary system. The borrower will state his income without providing evidence. The lenders still reviewed their credit history, but it took the borrower to their words about the amount they earned.
More recently, the Consumer Financial Protection Bureau (CFPB) has required lenders to verify the applicant’s income. Lenders typically do this using W-2 or payroll statements, but may use bank or other financial statements that highlight the borrower’s assets or investment returns.
NO-DOC mortgages require different documents, but offer the same benefits as traditional mortgages and other types of mortgages. It will help you borrow the money you need to acquire the property.
Once you get a loan, Nordok loans work like traditional mortgages. This means you will repay interest on what you borrowed and the set amortization schedule.
History of Nordoc Mortgage
“This is an option that has been around for decades,” says Greg McBride, Chief Financial Analyst (CFA) at Bankrate at No-Doc Mortgage. “However, during the housing boom (in the early 2000s), this previous niche product came into contact with mainstream borrowers, a breeding ground for problems that led to housing busts.”
For the years leading up to the 2007-09 financial crisis, McBride said, there has been a tendency to be provided by subprime lenders rather than major financial institutions. However, due to the complexity of the financial industry, even the largest banks have been caught up in the risk of failing to verify their borrower’s ability to pay off loans.
Since then, “Norduk’s mortgage has returned to its niche product,” says McBride. “They are probably even more niche than before.”
NO-DOC Mortgage Requirements
If you have: If you have, you will be eligible for a no-dock mortgage:
- Adequate income
- Important assets
- 30% or more in case of down payment
- Credit score of at least 700
“These are not available to typical middle-class or middle-class borrowers,” says McBride. “This is for the wealthy online individuals who have a fairly unique situation, such as successful startups and entrepreneurs who have adequate fairness in their company.”
Types of Nordok Loans
No-Doc mortgages are offered in a variety of ways, and each No-Doc lender has its own requirements for this type of financing. Here are some types of Nordic Lawns you may encounter:
- No Income, Verified Esset (NIVA) Loans: Lenders will check their ability to repay with liquid assets, such as stocks and retirement accounts.
- Bank Statement Loan: It is also known as a “defined income, verified assets” (or SIVA) loan. This proves the income of one of these loans using your bank statement, rather than paying a stub or W-2. This generally makes sense if you are self-employed or otherwise will not receive a traditional salary.
- Income, no assets (Nina) loan: To qualify for one of these loans, you usually need to prove that you have rental income. For example, if you are a real estate investor who purchases 3-unit rental property and rent from two units covers mortgage payments, Nina’s lender may expand your funds to you.
- Low Dock Loan: These loans require minimal proof of income. It is usually provided based on your credit score.
Non-DOC Mortgage vs. Traditional Mortgage
Both No-Doc and traditional mortgages provide the funding needed to buy a home. However, NO-DOC mortgages require a higher credit score and greater downtime than traditional mortgages.
Even the best Nordok mortgage lenders tend to charge higher interest rates. why? Because borrowers who lack the full concrete evidence of regular earnings appear less creditworthy, lending them takes a higher default risk.
| Traditional loans | I had a loan | Nordok loan | |
|---|---|---|---|
| Minimum down payment | 3% | 3.5% | Over 30% |
| Minimum credit score | 620 | 580 | 700+ |
| interest rate | 6.87% (30 years fixed)* | 6.60% (30 years fixed)* | It varies, but we expect to pay a few percent higher points than traditional loans. |
| *Interest rates based on bank rates as of June 13, 2025 |
Pros and cons of non-DOC mortgages
Like almost any type of loan, Norduk mortgages have benefits and drawbacks.
No-Doc Home Loan Pro
- You may be able to buy a house without a consistent salary.
- With fewer documents to submit and verify, it could potentially be approved faster.
Cons of NO-DOC mortgage
- Currently, few lenders offer these loans.
- To qualify, you need a good credit score and a lot of liquid assets.
- No-Doc mortgages usually have higher interest rates.
Do I need to get a No-Doc mortgage?
If you fall into any of these categories, a No-Doc mortgage could be a good option for certain home buyers.
- You are self-employed.
- You have an inconsistent income, but you have enough assets.
- You have a large tax amortization that lowers your taxable income.
- Generated high net assets through non-traditional sources such as inheritance.
NO-DOC mortgages are expensive and should only be considered if you are not qualifying for a traditional mortgage. Many lenders work with self-employed borrowers to verify their income in an alternative way, without the need for a verification mortgage with no income.
Where to find a Nordok mortgage today
The same amount (or even in the same form) as a disadvantageous recession does not exist in the same amount as a disadvantageous recession, but there are no mortgages that are still unavailable. They are part of a larger bucket of unqualified mortgages.
However, these products are not widely advertised. Also, if you are looking for a NO-DOC mortgage, you can find slim picking. You are likely to find them through a portfolio lender, and in some cases they may be called bank statement loans.
No-Doc Mortgage Alternatives
If you can provide income documents – you may not need to get a Nordic loan, even if it is not a regular document. The options are:
- I had a loan: FHA loans often require only 3.5% for people who are more lenient than traditional loans and have a credit score of at least 580. This makes it a good solution for borrowers who are unable to pay a large down payment.
- Unqualified mortgage: These non-conforming loans allow alternative income verification methods, similar to Nordok mortgages. However, like Nordok loans, they tend to have higher interest rates than traditional loans. Unqualified mortgages are useful for borrowers with complex financial histories like bankruptcy.
- Full-speed purchase: High-fed individuals can bypass mortgage funding completely and buy homes with cash. Make a full-fast purchase and often has more leverage when negotiating with the seller, avoiding interest payments.
