I have recently been asked what are the different ways a borrower can get a loan. Here we go in a nut shell!!
Full DOC - Pay stubs, last two years taxes, bank statements, retirement account information.
Stated DOC - Either a Wage earner, or self employed. They have proof they are self employed (each lender is different) Business license, advertisement for your business, CPA letter. Or the stated Wage earner. Great program for a borrwer that has a coborrwer with really bad credit. This way you can use the income and get the loan.
Bank statements - Some lenders will let you use 12 month bank statements to qualify for your loan. They take all the deposits, MINUS ANY TRANSFERS!! and any interest deposits. They put that as your income and this works great for people who do not claim everything on their taxes.
NO Doc. - Need a great credit score, and sometimes it is hard to get 100% but they can do NO DOC loans where as bring a copy of your Social Security card, and ID card.
Limited DOC - 1 paystub rather then 2, and 1 year taxes rather then both required years.
Each lender may call their own products something different but these are the programs in general. Beware of interest rate scams!! Check your borrowers Truth in lending disclosure.
Let me know if this was good enought information.