What is a no ratio documentation loan?Answer:
A no ratio documentation loan is a type of loan that will require 2 years proven employment and verified assets, but will not verify income. When you are filing an application for a no ratio loan, you would not have to fill in the income section, but will have to declare appropriate job description that will convince the lender you can repay the mortgage. It has to make sense - you can't really list occupation as busser and expect the lender to have trust in your finances.
If you are self-employed or commissioned or an investment guru, this no ratio documentation loan is for you. It is believed that you have the financial capacity to take up a mortgage but you are too shy to state your income.
The no ratio documentation loan will usually require asset verification on purchasing, but perhaps not on a refinance - the equity built on the home is supposed to suffice. A no ratio refinance with cash out will be similar to a NINA loan - no income, no asset since the cash-out will cover for any asset requirements.
These no ratio loans will have relatively nice rates for 10 percent down payment. Down payment of more than 10 percent gets you even better rates.
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