In personal finance circles, NINJA is slang for a loan extended to a borrower with "no income, no job and no assets". It is a type of subprime lending, and usually offers the lender a low initial rate, which is then increased after a few periods of payment.
If properties appreciate in value, borrowers can tap equity to make these escalating payments; however, when properties don't appreciate, many borrowers cannot make payments. Ninja loans are, by nature, risky for borrowers and should be avoided.
