A mortgage Tony Soprano would love: The no-doc
By Holden Lewis • Bankrate.com

Most house buyers work for a steady paycheck and are willing to divulge details of their finances in exchange for the best available mortgage loan.

But a lot of house buyers don't draw a steady paycheck from a boss:

Limited-documentation mortgages are available for such borrowers.

They're called "low-doc" and "no-doc" mortgages for the amount of documentation they require. The terminology isn't always accurate. Some low-doc mortgages require the borrower to give up lots of paperwork, such as tax returns and profit-and-loss statements.

Even no-doc mortgages require at least a credit report and a property appraisal.

Borrowers pay for the flexibility and privacy of these types of mortgages. They carry higher interest rates than conventional mortgages. Lenders want these borrowers to make substantial down payments and to have excellent credit.

Ethical mortgage brokers and lenders generally try to talk customers out of getting low-doc and no-doc loans because they cost more. Before applying for one, "talk to a qualified mortgage banker and give him all your information first," says Brian Pawsat of Prosperity Mortgage in suburban Washington, D.C. "Most people who ask for one don't need it. A good loan officer can help you work through and document what you think is undocumentable."

Types of low-doc/no-doc mortgages
There are three main types of low-doc/no-doc mortgages. To illustrate what sort of person would be right for these loans, we'll match each type of mortgage with characters from TV shows.

• Stated-income mortgages tend to be for people who work, but don't draw regular wages or a salary from an employer. That includes self-employed people or those who make a living off commissions or tips.
  
  A character that this type of mortgage might be appropriate for: John Becker, the Bronx doctor played by Ted Danson in "Becker."
  
  
• No-ratio loans are often the right call for wealthy people with complex financial lives, retirees who live off investments, and people whose lives are in flux because of divorce, recent death of a spouse or career change.
  
  A "character" that this type of mortgage might be appropriate for: Anna Nicole, definitely.
  
  
• No-doc or NINA (no income/no asset verification) mortgages are for creditworthy people who want maximum privacy and can afford to pay for it. A character this type of mortgage might be appropriate for: Tony Soprano, because he wants you to ask no questions.

Regular people, like the characters in "Everybody Loves Raymond," would get regular, conventional mortgages supported by lots of documentation -- typically, a month of paycheck stubs, three months of bank statements, W-2s and complete income tax returns from the past two years, a list of all creditors, and possibly legal documents, such as divorce decrees and bankruptcy papers.