What’s the difference between stated income loans and no doc loans? The answer to that question is relatively simple because David and come loans require that a person state their income such as the last two years tax returns and also their current income levels whereas a no doc loan is a type of loan where you do not have to tell the lender how much you make but only give an approximation and let the lender know how much you could possibly make in the future.
These types of loans ruined the real estate market and had a great deal to do with causing the real estate bubble to burst as such it did. This type of loan caused a lot of people to lose their jobs because the economy to tank and take a nosedive in a direction that none of us really wanted to in the first place.