Credit Report

• When the lender evaluates your application, one of the primary items that it will look at is your credit report. With a no doc loan, the lender is taking a big risk by not verifying your income. To compensate for this risk, the lender typically requires a very high credit score from the borrower (in the upper 700s at least).
  
  

Down Payment

• For a no doc loan, you will probably have to come up with a larger down payment than with a traditional mortgage loan. Some lenders will require 25 to 30 percent down.
  
  

Bank Balances

• Lenders who offer these types of loans may also require you to have a certain amount of money in the bank. If you have significant cash reserves, the lender may feel better about the risk.
  
  

Interest Rate

• No doc loans usually require a higher interest rate. You may have to pay somewhere between .5 and one percent more than market interest rates for this type of loan.