Also think about someone who is doing the exact same work, but went from being a W2 employee, to being paid a 1099 (which is considered self-employed.)
Traditional loans require two years self employed, so even if the above example made a million dollars a month, couldn’t get financing for two years regardless, even on stated income. That’s where no doc comes in to play. Of course said person has to have good credit, and there’s a sense of personal responsibility on both the part of the borrower and the mortgage representative as to whether their new income source should be sufficient...but again, this person is also stuck.
So what?