Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
When you apply for a No-Ratio loan, no income information is needed by your lender. Since you are not providing any income specifics, the lender does not calculate your debt-to-income ratio when making their decision on your mortgage loan. The lender can make their decision based on your credit and the amount of your down payment or equity in your home.
No-Ratio mortgages can be used to purchase a single family home, townhouse, condominium, or qualified manufactured housing. A cash out refinance is possible if the amount is within the lender’s loan guidelines.
A No-Ratio loan is ideal if you have more debts than a mortgage lender allows for conventional mortgages. The maximum debt ratio allowed is generally 40 percent for a conventional mortgage loan.
The interest rate will usually be about a half point higher than the rate for a conventional mortgage, however the lender may raise the rate depending on your credit score and the loan-to-value ratio on the property. Most lenders also require you to have been employed for a minimum of two years at the same job, or they may also increase your rate.
- Should You Refinance? Make Sure the Timing is Right
- Appraisal Basics
- 3 Factors that Can Negatively Affect Your Mortgage Application
- How to Get Approved for an FHA Loan despite Bad Credit
- 3 Warning Signs of Loan Modification Scams
- FHA Loans for a First-Time Home Buyer
- What Lenders Don't Reveal About Home Equity Loans
- FHA Eligibility with Bankruptcy and Foreclosure
- Home Equity Loans for People with Bad Credit