A no documents required loan is offered for two extremes:
1.The bank knows you, your FICO score is over 750, you have tremendous assets and income. Then they will offer a no-doc loan at same terms and conditions as full-doc.They want you as a customer and try to keep you happy by not making you bring in lots of paperwork.
2.MOST of the time,no documents loan is for low FICO, no assets, low-income. You have to pay a large premium for the loan in the way of points and fees and rate. So you are a greater risk than most who can provide credible documents to support their ability to pay on the loan.