These types of loans are badly needed and what most people make the mistake of thinking and believing is that they were the source of the mortgage mess. That is not correct. The issue was and has always been the amount of skin in the game so to speak and responsible appraisals that take risk of an area into account..Think of it this way, which loan is riskier, making a loan for 80% of a properties value to a borrower that has little assets otherwise but documents their income or making a loan of 50% of a homes value to a borrower with good credit but shows no income documentation? Without question the riskier loan is always the higher percentage no matter if the income is documented or not. So there in reality there is a balance. 100% financing is always a mistake and is always riskier. FHA is now under water for the 1st time ever due to all the excessive FHA government lending since 2009. No Doc loans are stable if done well.