A Liar Loan is a category of mortgages where borrowers are allowed to state their income and assets without providing any documentation to verify this information. These loans became notorious during the housing boom of the mid-2000s when many borrowers exaggerated their financial standing to qualify for larger loans.
A No-Documentation (No-Doc) loan is a mortgage loan wherein the borrower is not required to provide standard forms of documentation, such as proof of income, employment, or assets to secure approval.
