Basically, that's it. A No Doc loan is based on your statement of your income and your credit score. Watch yourself on this, and don't get hooked into any fancy loans. If you stick with a fixed rate, long-term loan with a substantial downpayment, you'll be OK, as long as the payments are doable without strain.
However, the interest rate on such a loan will be a bit higher than a traditional 30-year mortgage. You might want to think about just a straight loan where you have to provide the documentation.
I recall G. Gordon Liddy saying on numerous occassions to never buy real estate w/o a lawyer.
You'll notice that the buyers in this story felt queasy about the 'no-doc' loan scenario, but their 'eagerness' overcame any thoughts of prudence. So they went ahead anyway.
Sometimes our initial instincts are correct.