What is a no-ratio loan?


A No-Ratio loan is the loan what people take to avoid declaring Debt to Income ratio. No income information will be provided on the loan application. High credit score, plenty of assets and verification of employment are required.

There are certain borrowers who may have hard time gathering documentation. With a no-ratio loan, they do not have to state income.

No-Ratio Does Not Require DTI

Most lenders with calculate debt to income (DTI) calculation when underwriting a borrower. Different loan programs may have different debt to income ratio to qualify homebuyers. FHA programs, for example, will require that the monthly mortgage payment won't exceed 29% of the gross monthly income for the borrower. 41% is the upper limit for combined secured and non-secured debt payments.

If you have any doubts that your DTI may not qualify you for a full doc loan, try talking to a mortgage specialist. There will be other options and no-ratio mortgage loans are just one of them.

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