A True NO RATIO Loan for Primary Residences

Today, I want to talk about a program that has been around for a while, but it doesn’t get nearly as much attention as it should. It’s a true “no ratio” program for primary residences.

How Do No Ratio Loans Work?

“No ratio” kind of sounds like stated income and acts like it too. The difference is that we don’t document the income AND we also don’t state it. That’s where the no ratio element comes into the picture. It’s for buyers who can’t document their income.

No Ratio Loans for Special Circumstances

This program is clearly not for everybody. It comes with higher rates and it’s going to have other limitations. But it could be a possibility for someone who might be finding a great deal on a property and they just aren’t qualifying, or they can’t get a loan for other reasons (such as not fitting a bank statement program).

There are special circumstances that come up when someone wants to buy but they are having a hard time getting the necessary financing. This type of loan could save these deals and make it possible for people to get into a house.

I wanted to share this information. Since it’s not stated, it’s even better because we don’t have to look at ratios and there are no requirements for income documentation at all.

Primary Residence Purchases Only

This loan isn’t for everyone. But it is an option for some people who are ready to get into primary residences. It’s different than hard money, which is almost always for non-owner-occupied properties since the purchase is for business purposes only.

If you have a situation that might fit these requirements for a no ratio loan, or you know someone who is having a hard time getting approved for a loan, then reach out for more information. I’m happy to share more details about this type of lending, as well as other options that might fit your needs.