The home equity loans are secured loans as these loans are offered against the home used as collateral.  Other than a property to be used a collateral you need to put in a lot of paperwork as well. That is required to support the claims that you have made in the application for the loan.  Though most of the lenders would require you to furnish all the documents however, there are lenders who offer loans without any documents as well.
The no doc loans are also called as the stated income loans. These loans are preferred by the people who have a good credit ratings. In case they do not have a regular source of income they still can obtain a loan. These are the loans if you have a problem in arranging proper documents for your income. Now in case you are approved for a loan without any documentation this is certain that the interest rate offered would be higher. This is because the risk involved is too high for the lender. The lender only has to assume that the personal loan would be paid back by you, thus risk is quite more as compared to the conventional mortgages and that is why the interest rate charged is too high.
The no doc loans require complete market research to get a best deal. In the no doc loans you just have to provide the information on the source of income. The credit check is to be done by the lender to ensure the credit rating that you have claimed to have. All you need is an approximate score of anything better than 680. With the increasing demand of the no doc loans the lenders are thinking about the concessions when it comes to eligiblity credit scores.
The no doc loans are often preferred by the people who are self employed or work on commission basis. All you need is your bank statement of past two years to prove that you have a steady source of income. Other than this you need to furnish you income tax returns of the past two years. The no doc loans when shopped carefully can help you save a lot of money. A slight change in the interest rate would help you save a lot of money.
There are many other things that you need to take care of. To act smartly is what it asks for. Do not let the lender access your credit report till the time you are not sure that you are ready to apply for the loan. If there are too many credit equiries made frequently this would damage your credit scores. It is always advised that you should yourself look into your credit scores before you apply for a loan.