What Is a No-Doc (No-Ratio) Loan?
A no-doc home loan — also called a no-ratio or no-income-verification loan — is a non-QM mortgage that qualifies you on your credit and the equity in the home instead of your income. There are no tax returns, no W-2s, no pay stubs, and no employment verification, and no debt-to-income ratio is calculated — which is why it's called "no-ratio." It's not the old "stated income" loan: the file is still fully underwritten for ability to repay through your credit profile, cash reserves, and a clean recent mortgage history. It's built for self-employed owners, retirees, and investors whose tax returns don't reflect their real ability to buy.
Key Facts
No-Doc vs. the Old "Stated Income" Loan
The pre-2008 "stated income" loan let a borrower write down an income figure with nothing behind it. Those are gone. A modern no-doc loan is a non-QM product that doesn't use an income figure at all — instead of stating income, it removes income from the equation and leans on credit and equity, which the lender can verify. The Dodd-Frank ability-to-repay rule still applies; the lender simply satisfies it through your credit history, required cash reserves, and a clean 12-month mortgage record rather than through income documents.
How the Terms Are Set
Because there's no income in the file, your credit score and loan size drive everything. Stronger credit unlocks higher financing and a lower down payment — as little as 20% down at a 740+ score, rising toward 35% at the 640 minimum. Loan amounts run from $100,000 to $3,000,000 for a primary residence or second home, on purchases, rate-and-term refinances, and cash-out refinances. No-doc financing generally carries a rate premium over conventional and over other non-QM programs, reflecting that credit and equity are the only pillars.
No-Doc vs. Bank Statement vs. Asset Depletion vs. DSCR
No-doc is the leanest of several ways to qualify without tax returns, but it isn't always the cheapest. A bank statement loan uses business or personal deposits as income; an asset depletion loan converts savings and investments into qualifying income; a DSCR loan qualifies an investment property on its own rent. Those programs document something and can reach a higher loan amount or a better rate, so no-doc makes the most sense when documentation itself is the obstacle. An experienced non-QM lender can compare all of these side by side with live examples before you choose.
Who Should Consider a No-Doc Loan?
No-doc financing fits self-employed owners whose write-offs understate their means, retirees living off assets with little documentable income, investors and entrepreneurs with complex income, and borrowers between qualifying years — anyone in Oregon or California with strong credit and real equity but a messy paper trail. It's for a primary residence or second home; for a rental, a DSCR loan is the better tool.
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From the Blog
Further Reading
Self-EmployedSelf-Employed Mortgage Loans in 2026: Bank Statement, P&L, and Asset Depletion Programs for Business Owners in Oregon & California
If you're self-employed, your tax return probably undersells your income. Here's a deep dive into the alternative documentation mortgage programs — bank statement loans, P&L-only qualification, asset depletion, and more — that let business owners, freelancers, and 1099 contractors qualify based on their actual earning power.
High-Net-WorthAsset Depletion Loans in Oregon and California: How to Turn Savings, Investments, and Retirement Into Mortgage-Qualifying Income (2026)
Asset-rich but income-light? An asset depletion loan converts your savings, investments, and retirement accounts into qualifying income — no job, paycheck, or tax returns required. Here's how the three calculation methods work, and why the same borrower can qualify for wildly different loan amounts depending on which one a lender uses.