What is a No-Ratio Loan?
A No-Ratio Loan is a type of loan that does not require a borrower to present their debt-to-income ratio to the lender. This loan is great for those who have a larger than normal amount of debt, or those who have incomes which are hard to document- such as being unemployed. Generally, people who qualify for a No-Ratio Loan have outstanding credit scores with an asset portfolio.
Features of No-Ratio Loans
- No debt-to-income ratio calculated
- No tax returns, W-2s, or income verification
- 75% LTV (loan-to-value ratio)
- Loan amounts up to $2.5 million
- Min FICO (credit score) 620
- No escrows
- Qualify on the IO (interest only) payment