Question:

What are the common features of No Ratio home loans?

Answer:

The No Ratio home loans are designed to borrowers with significant assets and sufficient income to make a mortgage payment. No Ratio loans can be both fixed and adjustable rate mortgages. They require two-year track of employment in the same field, preferably with the same employer. Self-employed borrowers seeking a No Ratio loan may use an accountant professional to verify employment; DTI (debt to income) ratio is not considered.

No Ratio Mortgage Loans Features

Borrowers' credit score has to reflect high responsibility towards their finances. Credit score for owner-occupied properties may start at 620; investors and second home purchasers may need a higher score .

No Ratio home loans usually reach 90% LTV. 100% is rarely available, or is packaged with a second mortgage.

Applicants are usually required to provide the name and phone number of employer for verbal verification. Income is simply stated on the application and will not be verified. Assets and any other data pertinent to the loan have to be fully documented.

Commonly, purchase and refinances with No Ratio mortgages are available for primary and second homes, as well as rentals.

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