A no ratio loan is a unique non-QM mortgage that provides a solution for underserved persons who have substantial savings along with undocumentable income, low income, unemployed, or retired. Your funds to close, mortgage payment reserves, and credit history are the primary factors that determine if you will be approved or denied financing.
This no income disclosure loan is pretty simple once you know the details. Here's a couple of examples below.
In either transaction, no personal income or employment is disclosed on the application.
This no doc mortgage benefits those who have a sizeable down payment and significant savings or investments in a money market, IRA, 401(k), brokerage account and so on.
In theory, you could be in between jobs or retired and receive a large lump sum of money from an inheritance, gambling, or legal case and use a portion of that to get a mortgage to buy a home. This loan helps people who are traditionally locked out of financial systems and are generally considered low-income among other aspects.
No Ratio home loans require little documentation which include:
Note: These requirements apply to both purchase and refinance transactions. A debt service refinance second loan with cash out is capped at 75 LTV and credit scores must be over 720. As the loan amount increases, higher credit scores, larger down payment/equity, and more cash reserves are required. Guidelines above are subject to change.
Alternatives to the No Ratio Mortgage – Your best options are a Short Term Bridge Loan or an Asset Utilization Loan.
We serve borrowers across the state of Colorado which includes the following cities and adjacent area:
Disclosure: Minimum loan amount is $200,000 for residential. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.