No Documentation Programs, are (with a few exceptions) exactly that, No Documentation. Generally speaking a borrower with good credit history can obtain a purchase or refinance loan under a no documentation program and not provide any documentation with regards to income, employment or assets.

The term "no documentation" may be considered a misnomer to some individuals. Credit history and mortgage/rent payment history is still required.

Still, a borrower who qualifies for a No Documentation loan does not list on the application any income or employment information, and does not list any asset information. These are great programs for someone who has switched occupations, has worked in many occupations over the past few years, or has had gaps in employment. They are also good for individuals who are wealthy due to inheritances, legal judgments, lottery winnings, etc. These programs are also often used for a stay-at-home mom with good credit to be the applicant when the husband, with work history, has less than perfect credit.

Be prepared for the credit history and mortgage history to be scrutinized. Late payments, collections, charge-offs, judgments or bankruptcies may prevent a borrower from qualifying under no documentation programs.

Also, if there is a high percentage of payment shock (if purchasing a home and your new payment is significantly higher than your existing payment), be prepared to either not qualify or provide some extra information such as asset availability.