NO DOC is different than STATED INCOME….
I don’t know if anyone still does NO DOC investment…
With STATED you still need to prove source of income, either job or pension/retirement etc, but do not need to verify income.

For Full Doc,
Safest thing to do is have the HELOC funds in their bank account for several months, so if lender wants to see 2 months bank statements, they can be produced without showing a large deposit on the first statement. The debt service will show on their credit report, and as long as they can qualify with DTI, should not be an issue. Create the seasoned assets. Additional liquid assets never hurt the file.

Ya never know what a lender will ask for. Even with a FNMA approval, each lender can still ask for additional documentation, which isn’t known until an UW reviews the file…

I had a situation this week, a retired borrower has a new job, full time, but only for 8 months. One lender wouldn’t accept the income, as THEIR minimum is 2 years employment, even though it wasn’t a concern for FNMA. Another lender said full time would be OK.
Qualifying is on a case by case basis.

With higher credit scores, 700+ there are still options.
One honest late mortgage payment can send a high earning, 780 score, with no other debt down 100 points or more…
It’s a crazy gauge. SCORE and LTV are big factors.