No-doc loans are another casualty of the recent mortgage meltdown. Essentially, a no-doc loan is a mortgage for borrowers who have good credit and income, but who can’t qualify using standard underwriting income rations.

Originally intended for a small niche market, they were designed for people who have high assets or net worth but whose income doesn’t fit the nine-to-five job pattern with a regular paycheck. Their use was expanded by lenders in recent years and these loans were offered to anyone with reasonable credit.

Now these loans are much harder to get and they require excellent credit, a substantial down payment, and strong assets. If you’re a self-employed business person, in a new career, or have an irregular income stream, these loans can be a good way to go.