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No Ratio Mortgage is currently
|A No Ratio Mortgage is a useful option if you are carrying more debt than a
traditional mortgage will allow. In traditional mortgage banking your debt
to income ratio is one of the key factors in determining loan approval. With a No Ratio
Mortgage, no income information is included with the application so no ratio
calculations are made. I use the program when a client's current income is low
relative to their debt or when the client has income which is
impossible to verify. As all other information on the mortgage application is verified,
the No Ratio Mortgage is a "middle ground" product between a Stated
Income and true No Doc mortgage but may be
a good choice for you. Interest only
No Ratio Mortgage products are available. Email
mortgage questions. I also offer no ratio
business equipment leasing to business owners.
Available No Ratio Mortgage Terms
No Ratio Mortgage products are available as:
15 or 30 year fixed rate require only 10% equity and the rate will not
Home Equity and Second Trust programs are
Allowable Use and Property Types
No Ratio Mortgage products are available for Single Family, Townhouse, some
manufactured housing, and low rise condos. Some programs allow high rise condos
2-4 unit buildings, second homes, or investment properties but are slightly more
expensive or require more equity. Allowable uses are for purchase or rate and
term refinance. The programs will allow a "cash out" refinance but
there are limitations on the allowable cash back. Please contact me with the
specifics of your situation for guidance. If you are unsure a No Ratio Mortgage
is the right answer for you, I have included a page on traditional
mortgage ratio documentation requirements which may be useful.
The fundamental thing to keep in mind with true NO Doc Mortgages is that the
lender only has your credit profile and property to evaluate. If your situation
allows verification of either employment or assets you will save some money
because you have lowered the lenders risk. The choice is yours.
Some general guidelines for a No Ratio Mortgage.
- Minimum middle credit score is 640
- 5 credit accounts are required. 3 may be from alternative sources-utility,
auto insurance, etc.
- Bankruptcy and foreclosures must be discharged for 3 years with
- Two years employment with same employer
- Two months PITI reserves are required with an LTV <=80%. 6 months
reserves are required otherwise.
- 10% minimum down payment is required from your own funds. No gifts.
They allow you to purchase
or refinance a
single family, townhouse or condo. An investment property can be a single
family, 1-2 unit, townhouse or condo. Vacation homes also can be a single
family, townhouse, or condo. The loan program can be used with our
Learn more about No Ratio Mortgage
I have a page on calculating your qualification ratios.
I have a page on traditional documentation
In 2008, Short Sales are where most of the bargains in real estate are and
they are NOT just for investors. Learn
more about Short Sales
Learn more about Loan Modification. If
you can not refinance, it may be the best way to save your home today.
As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your consumer debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
Prequalify for your No