A No-Ratio mortgage is a type of mortgage program where we do not require the borrower to provide income verification. This means that there is no need to calculate qualifying ratios such as debt-to-income ratio (DTI). This can be particularly beneficial for self-employed individuals who may have fluctuating incomes or difficulty providing traditional income documentation.
Without the need for income verification, borrowers can potentially qualify for a higher loan amount than they would with a traditional mortgage. This can be especially helpful for those who have a strong credit history but may not have a consistent income that can be easily verified.
One important thing to note about No-Ratio mortgages is that they typically come with higher interest rates compared to traditional mortgages. This is because lenders are taking on more risk by not verifying the borrower’s income. However, for some borrowers, the benefits of not having to provide income documentation may outweigh the higher interest rates.
A No-Ratio mortgage is a mortgage program that does not require income verification, making it a good option for self-employed or unemployed individuals and others who may have difficulty providing traditional income documentation.
Contact us for rates and fees.
